Categorized | Residential

United States Housing Market Slowly Becoming Favorable for Sellers

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For the better part of the last five years, sellers were fortunate to have received one serious bid on their home. That trend, however, is starting to change, and the market is gradually moving back to favoring the seller. Residential real estate properties in many cities in the United States are seeing homes receive multiple offers. In some areas, bidding wars are starting to take place as the total amount of sales inventory dwindles.

There are a number of factors contributing to the declining inventories. In many areas, sellers are still opting to wait on selling their property. Home values are still down relative to where they were when many homeowners made their initial purchase. In fact, there are still a significant number of homeowners that are facing underwater mortgages. Additionally, the number of foreclosure resales has dropped significantly, as banks look for alternative means of offloading delinquent and repossessed homes.

Investors have predominantly made up the majority of the buyers in the last two months. They are looking to take advantage of the low prices and record low mortgage rates. In fact, economists have been calling the current market one of the most affordable in history. Many of these investors plan to first rent out the homes with the intentions of selling them when the market truly begins to get hot.

Some residential real estate markets in the United States are reporting that their total inventory has fallen below the six-month supply norm. Nearly half of the leading markets in the United States have an inventory supply of less than three months.

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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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