Low Housing Inventory Leads to an Increase in Bidding Wars

Low Housing Inventory Leads to an Increase in Bidding Wars

Many changes are facing home buyers currently house hunting during the Coronavirus pandemic – most notably housing inventory. State and county restrictions directed towards protecting our health have led to new methods of interacting with realtors, loan officers, and home sellers. Virtual tours and meetings abound, and open houses are limited and require additional precautions. One of the most surprising impacts, however, is the very real shortage of available homes on the market. While demand for homes has declined, supply has declined much more drastically, leading to an unprecedented percentage of bidding wars.

According to Bloomberg, roughly 40% of homes received multiple offers, with the number jumping to 60% in some major cities. Bidding wars are most common in entry-level homes and decline in homes priced over $1 million.

A CNBC article states that home listings nationwide were down 29% in May compared to this time last year. This is thought to be due to the seller’s concerns over having others tour their home during the pandemic. Even with limited options on the market, many home buyers are seeing this as an opportune time to move, as mortgage interest rates continue to hit historic lows. Some experts also conjecture that increased time at home due to the pandemic restrictions are causing people to look for properties with more interior and exterior living space, driving even more buyers to the market.

In these conditions, it is more important than ever to work with experienced professionals to help find the right home and loan for you. It is important to know as soon as new properties become available so that you can have the chance to view them and decide if you want to put in an offer before they sell. Acting quickly on a home you want to purchase is imperative right now and becoming pre-qualified before house hunting can allow you to get your offer in on your dream home as soon as you find it.

To learn more about your loan options and discuss pre-qualification, please contact one of our experienced loan officers today!

Sources: https://www.bloomberg.com/news/articles/2020-05-20/bidding-wars-are-back-even-in-housing-market-stung-by-pandemic
https://www.cnbc.com/2020/05/20/coronavirus-bidding-wars-in-a-pandemic-housing-is-heating-up-fast.html

Related Posts

Three Things to Know about the Fed’s Rate Decision
Three Things to Know about the Fed’s Rate Decision

The Federal Reserve just increased the Fed Funds rate .75%. What does that mean, and how does it impact the mortgage market? Here are three things to know about today’s news: 1. The Federal Reserve Influences Mortgage Rates, They Do Not Set Them Many have the misconception that the Federal Reserve’s actions have a direct […]

September 21, 2022
Full Post
4 Financial Topics to Discuss Before You Get Married
4 Financial Topics to Discuss Before You Get Married

Money is a touchy subject in many households. Getting married will certainly affect you and your partner financially. Whether you decide to combine your finances or not, having open and honest conversations about money early on is crucial. Studies have shown that 1 out of 3 adults admit that money is the source of conflict […]

August 11, 2022
Full Post
5 Tips to Make the Most of End of Summer in Your Yard and Garden
5 Tips to Make the Most of End of Summer in Your Yard and Garden

The August heat has rolled in, and autumn is waiting just around the corner. That said, there’s still plenty of time left to enjoy your summer in your yard and garden! 1. Bring on the Shade Rising temperatures and heat index in the month of August make shady spaces more important than ever. If you […]

August 04, 2022
Full Post

Connect With Us