Categorized | Residential

Housing Market Bidding Wars May Be Coming Back

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The residential real estate market has certainly been confusing as of late. Even the most experienced economists and speculators do not know what to think, as mixed signals continue to be present in cities throughout the country.

 

While some believe that the housing market will not bottom out until 2013, others believe that such an event is far more imminent than the experts are saying. One of the major factors leading to the confusion is the fact that bidding wars have started to pop up across the United States.

 

There was a time when homes when sit on the market for as many as one to two years. Now, in certain markets, homes are being sold nearly as soon as they are listed. Buyers are no longer able to submit low bids to take advantage of desperate sellers. Instead, buyers have no choice but to put in competitive bids if they hope to buy a house that they like.

 

Inventory levels are at their lowest state since the residential real estate crash took place. While the low inventory levels can be attributed to many potential sellers playing the waiting game, they are also indicators of the success that some markets have had in recent months.

 

Because the levels are so low, sellers that appropriately price their house are receiving multiple offers that sometimes exceed the list price. Economists believe that increased inventory levels would actually benefit the housing market. The market simply does not have enough options at the current inventory levels, and increased numbers may actually bring even more potential buyers.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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