Reduction in bidding wars signals stabilizing housing sector
Posted on Friday, August 16, 2013 at 2:03:32 PM
In recent months, buying a home has felt more like a part of "Black Friday" than the housing market.
Thankfully, bidding wars are slowing down, a sign that the sector is achieving a state of balance not seen in some time, according to data from research company Redfin. Hopefully, buying with residential financing will be less competitive soon.
Not too long ago, making an offer meant joining a list of other potential buyers. In some cases, investors were making all-cash offers that forced other people to the side, CBS' Miami affiliate noted. In other cases, there was just a high demand.
"I was the first one to see it at 10 o'clock," Brandt Elliot, an area home buyer, told the news source. "By 4 o'clock, when I had sent my wife over there in the afternoon, they had already had another offer."
Redfin reported that the number of bidding wars is reducing, with only 63.3 percent of listed homes receiving multiple offers. That was at its highest in March, at more than 75 percent.
Since then, the trend has been generally positive, and residential financing is an affordable method for buying a home.
In addition, the lessening competition has meant that more offers are closing near the original listing price, according to Redfin.