Trend alert: Bidding wars are back
Posted on Tuesday, May 29, 2012 at 4:24:56 PM
Potential homebuyers may be in for a surprise this year – bidding wars are back. Buyers are now seeing competition spark in a number of markets across the country as they try to find the best deal in desired neighborhoods.
Contracts to purchase previously owned homes was up 12.8 percent in March 2012 from a year ago and up 4.1 percent from February this year, The Wall Street Journal reports. With inventory levels decreasing to normal, home prices increasing and residential financing becoming easier to attain, more potential homebuyers may have to make strategic offers on properties to win a housing bid.
"We're writing a record number of offers, but we're not seeing a record number of closings and that's because it's so competitive," Glenn Kelman, chief executive of real-estate brokerage Redfin Corp. in Seattle with offices in 14 states, told the news source.
If you’re on the market for a new home, consider consulting with a real estate agent on the competitiveness of the neighborhoods and communities that you desire. This could help you make a decisions on whether to bid low or high in a home offer.