We just wrote about how buyers in BC are less likely to engage in bidding wars than the rest of Canada, however it appears that buyers south of the border are still up for fighting for their dream homes.
But bidding wars to the South appear to be largely due to supply shortage, or at least according to an article in The Wall Street Journal.
The Wall Street Journal’s quarterly survey found a sharp decline in all 28 tracked markets for inventory of homes listed for sale, making inventory levels the lowest they’ve been in years.
The increased competition for the limited amount of homes is irritating and frustrating to buyers and their agents
“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,” said Glenn Kelman, chief executive of real-estate brokerage Redfin Corp. in Seattle to The Wall Street Journal. Of all the offers Redfin agents have made in San Francisco this year, 83% have been competing bids.
So why is inventory on the downslide? Well, a few reasons are named, including sellers holding off on putting their homes on the market, and investors outdoing consumers for top properties and offering cash for a quick deal.
Other theories point to artificially low inventory levels because banks aren’t listing foreclosed homes they own.
But even though offers are heating up, homes are still selling for pretty low prices compared to previous years. Jeffrey Otteau, president of Otteau Valuation Group, says increased demand is “entirely affordability driven, which tells me there will be strong resistance to price increases.”
What’s your take on the article? Are you noticing bidding wars starting to appear?