What’s that? Is it a bird? Is it a plane? No, it’s the return of the bidding wars. That’s right – we’re bold apples – we’re courageous – we’re putting a stake in the ground and calling the beginning of bidding war season. We’re already seeing this trend rear its head in a few deals we’re working on, but we’re expecting it to only strengthen over the coming months.
Why are we making this call? Certainly not because we think the market is oh-so-healthy and the economy is booming that bidding wars are the only way to make a foothold into the wonderful world of home ownership. No, we’re saying this because of more micro-dynamics at play. Simply:
low inventory + even lower good quality well-priced inventory + rising rents
+ low interest rates = increasingly frustrated buyers
We’ve been mentioning this frustration for a while and it’s showing no signs of abating. Quite the opposite – and it’s got to go SOMEwhere.
We’re seeing more buyers having to meet asking prices and more sellers getting to pick from multiple bidders. With interest rates remaining low, and a robust rental season starting in April, we believe that buyers who have been patiently looking for 4+ months are going to feel increasingly anxious and find themselves competing with other anxious buyers over those quality properties. Llleeeeet’s get ready to rumbleeeeee! And let us know if you’d like to see your property’s unique supply and demand curve before listing.
