Home Purchase Bidding Wars
July 13, 2020
If you’ve thought about selling your home, now may be your time. And boy do we need more homes on the market! Nationally, the number of homes for sale are down 21% over last year while demand has remained strong in many U.S. cities. According to a nationwide survey, more than half the homes sold in June faced competition with multiple offers (7/12/2020 Inman). A Southern California buyer told me he lost a couple full-price offers because buyers are bringing tens of thousands in out-of-pocket cash to the table on top of a full-price offer. In Utah County, I purchased a townhome for $315,000 in April. The same townhome in the same complex is now selling for $355,000.
This pricing inflation may bring back nightmares of the 2008 housing crisis, but this time it’s not about bad lending. It is simple supply and demand mixed with historically low interest rates. We just don’t have enough homes in many markets for the number of shoppers, particularly in western states like California and Utah.
For those of you considering a sale and purchase, there is still opportunity to win on both sides. In many of these high-demand markets, starter homes are the hardest to find. If you are thinking of a move-up, mid to high-range homes are a little more plentiful, providing better opportunity to get a good deal. Remember, this is about supply and demand and how much you can get for your money. Low interest rates are helping every buyer get more home for their money and high equity is helping mover-uppers get more home for their budget.
Contact a real estate agent to find out what your house is worth and your Intercap Lender to see how low rates are today. Use our preferred agents and we can help you sale and purchase a home in record time with less stress. We close homes at half the industry average with a 4.9 star rating.
