Trends of the real estate market have shifted from “seller’s market” to a “buyer’s market” and with those shifts have come dramatic change in pricing. When foreclosures anchored the prices of homes at lowered prices, buyers began to view overall value of the average house to be lower. With that mindset, buyers are low-balling offers and the offers are coming in at a higher frequency.
Inventory of homes are all an all time six-year slump. Low supply mixed with a heightened demand due to employment rates rising means buyers feel overly confident and eager when they enter the market.
“Existing-home sales and pending home sales are up more than 8 percent compared to a year earlier, the National Association of REALTORS® recently reported. Trulia Inc. also reported that falling home values and low mortgage rates have made home buying a better deal than renting in 98 of the 100 largest metro areas.”
Source: “Bidding Wars Erupt as Supply of Available Homes Shrink,” Bloomberg News (March 31, 2012)
Hart Real Estate Solutions