Buyers: You May Face Less Competition as Bidding Wars Ease
The intensity and regularity of bidding battles was one of the top stories in recent real estate headlines. During the pandemic, extremely competitive bidding wars were the norm because there were so many buyers trying to buy a property and so few of them available for sale. This caused home prices to rise. You probably seen this directly if you attempted to purchase a property over the past two years, and you might have encountered multiple residences where your offer was outbid.
However, the good news you've been waiting for is now here: statistics clearly indicates that bidding wars are abating this year.
The average number of offers on recently sold homes has significantly decreased over the past few months, according to the National Association of Realtors (NAR) (see graph below):
The graph indicates that earlier this year, properties were receiving a high of five offers. The average number of offers per recently sold home, according to the most recent data, was down to just under three. Rising mortgage rates dampened buyer demand, slowed home sales, and led to an increase in the number of available properties on the market, which is mostly to blame for this shift. Basically, more options for consumers.
The Implications for You
You can exhale a pleasant sigh of relief if you put off your house search because you were outbid last year or because you didn't want to deal with the peak intensity of bidding wars. Even though it's still a sellers' market, an increase in inventory gives you a chance to get back in. It's possible that some purchasers may still be in competition with you, but it won't be anything like it was a few short months ago.
To sum up
It could be time to start your home hunt if you put your plans on hold in recent years due to heated bidding battles. These days, bidding wars are less common, which can mean less competition for buyers like you. Let's connect to get things started right away if you're serious about purchasing a property or moving.