The new spring market brings about a fresh perspective on the real estate industry. With single-family home sales on the rise year after year--the 20th consecutive month this past February--the market has become increasingly competitive. Especially now that bidding wars are back. Home buyers are finding the competition for a new home (not excluding short sales and foreclosure listings) to be stronger than ever. Bidding wars are no longer between one to two other buyers, but between dozens or more. The cause? Well, it's a culmination of anxious sellers, even more anxious home buyers, and a tight inventory. Buyers are very eager to purchase before home prices and mortgage rates continue increasing. In Boston, for instance, it's not a matter of whether a listing will get bids, but how many. At least 2/3 of listings in Boston's metro area generate bidding wars.
Home buyers in Rhode Island and southern Massachusetts are also feeling the competition. Our Ocean State's recovering market is showing positive results, with as many as 25 parties showing up to real estate showings. However, it is vital that supply (sellers) meet the rising level of demand (buyers) somewhere in the middle to get the economy back on track. Also: 6 tips to win a bidding war for your next home