This year’s spring selling season has been one to forget, however, Bloomberg has found that buyers are beginning to engage in bid wars over the few homes that are available. According to the article, the supply-demand imbalance caused by the pandemic has forced prices to go up. About 40% of homebuyers that Redfin Corp. agents worked with recently experienced competition with other prospective buyers when attempting to purchase property. In metros such as Boston and San Francisco, that number is hiked up to over 60%.
As Redfin Corp. economist Taylor Marr said, “demand fell off a cliff” due to low inventory. As the economy and the housing market continue to rebound from a slow selling season, future homebuyers will have to continue to be competitive, also dealing with the higher prices set.
This is a good sign for builders as higher home prices are expected to be sticking around through summer.