Shortage of Homes for Sale Creates Fierce Competition

     The newest problem in the slowly recovering housing market isn't a shortage of buyers, but a shortage of good, quality homes. Potential buyers are packing open houses and making offers on properties before they are even listed. This is causing bidding wars. With the wars created, real estate agents are competing among each other to represent the few sellers that do exist.

     Housing inventory has sunk to levels not seen since the bubble years. In April the homes across the country with a "for Sale" sign hit a record low of 2.5 million since 2006. Buyers are finding that the competition for quality homes is much more intensive than they thought.

      Near rock bottom interest rates and the sharp decline in inventory has helped stabilize some of the hardest hit markets like Las Vegas, Phoenix, Miami, etc. Some agents are worried that the lack of homes will turn off potential buyers, which would stifle the recent recovery in home sales. 

     All the predictions about the upcoming wave of foreclosures that was expected to dump a bunch of homes into the market hasn't come. Less borrowers are entering default, and banks are better managing the properties the have in their books.

      Keep you eyes open for the best homes, and be sure to act fast!

Post a Comment