Housing sector shifts from seller's market toward buyers
Posted on Monday, September 30, 2013 at 6:55:11 AM
Bidding wars are gradually becoming a thing of the past for the housing market. More people are having an easier time completing transactions, shifting control away from the seller and toward a more balanced sector.
In the past, buyers using residential financing had to compete with other offers. Now, a change is underway, according to Redfin. In August, more than 60 percent of buyers in the U.S. faced a bidding war, down on a monthly basis and more than 3 percentage points lower than the same time in 2012.
Overall, the most competitive market in August was San Francisco, with 84.7 percent of all offers facing competition, the news source reported. The biggest change occurred in Baltimore, which sustained a decline from July's figure of 50 percent to only 29.8 percent in August.
Moreover, the housing market is heating up on multiple fronts, according to Robert Shiller, co-creator of the S&P/Case-Shiller Home Price Index and contributor to the New York Times. Many people believe that prices are on the way up, with no sign of slowing down. Shiller was part of a survey that found that short-term expectations were high, while more than 4 percent of respondents felt that prices would go up long-term.
For those using residential financing, the market might be an easier place at the moment. However, concerns about the future may have some people waiting to see what happens.