Bidding Wars Brew Under Tight Supplies
Many areas are still seeing multiple offers on properties due to low inventory! Here is Las Vegas however, I have seen a drastic change in the market as far as multiple offers go! We are seeing many properties sitting on the market for longer days & fewer offers..Is it due to the sellers over pricing the property or because we have more inventory? I believe it is a combination of several things?
As housing inventories remain constrained in many markets, some buyers may face increased competition and more bidding wars heading into the spring-selling season.
Inventory Challenges
The real estate brokerage Redfin reports in its latest housing report that bidding wars are already elevated in places like Oakland, Calif. At the end of January, Oakland had six weeks of inventory, but with buyer demand strong, many homes for sale landed in multiple-offer situations, the brokerage reports.
“It’s not uncommon to see 15 to 25 offers in some of the more desirable places in Oakland, and for homes to sell 35 percent above the list price or even more,” says Tom Hendershot, a Redfin real estate professional.
Supplies are also tight, with less than three month’s supply in markets like Boulder, Colo.; Denver; Seattle; and Dallas, according to Redfin’s analysis.
Inventory of homes for sale fell in January, decreasing 6.7 percent month-over-month and 8.7 percent year-over-year, according to a January National Housing Trend report released by realtor.com®, which tracks price and inventory fluctuations in 200 markets.
About 80 percent of the housing markets tracked saw a drop in inventory levels, the report showed.
Inventories have had some of the steepest year-over-year declines in Las Vegas-Henderson-Paradise, Nev. (down 37%); Key West, Fla. (-36%); Colorado Springs, Colo. (-36%); Palm Bay-Melbourne-Titusville, Fla. (-35%); and Columbus, Ohio (-35%).
Source: “Bidding Wars Hit Oakland Amid Tight Supply,” Redfin Blog (Feb. 26, 2015) and “Inventories Tighten Up Again,” REALTOR® Magazine Daily News (Feb. 20, 2015)
