RISMEDIA, Monday, July 09, 2012— Record tight inventories
are making it increasingly difficult for growing numbers of buyers, who are
creating multiple-bid environments in markets that haven’t seen buyers battle
over homes in six years.
Buyers are back but sellers aren’t, especially in Western markets recovering
from large volumes of foreclosures. The result is that inventories are still
tightening as the spring buying season ends. Buyers are fighting over what’s
available, often to the benefit of those sellers who took a risk in this year’s
evolving marketplace.
Prices are reported to be on the uptrend with 62 percent of REALTORS® reporting
constant or increasing prices compared to the same time a year ago, according
to the National Association of REALTORS’® (NAR) REALTOR® Confidence Index for
May29 -June 8, 2012 that was released recently.
Buyer demand is reported to be growing faster than supply, and many REALTORS®
are reporting multiple offers. However, buyer foot traffic slowed in May
compared to last year, perhaps as buyers grew discouraged by slim pickings.
However, buyer traffic is still well above the moderate level, but seller
traffic is flat, according to the NAR survey. First-time homebuyers accounted
for 34 percent of total buyers. Normally first-time buyers are in the
neighborhood of 40 percent of total residential sales, according to NAR’s
Profile of Home Buyers and Sellers.
A majority of the 145 markets monitored by NAR Research experienced slower foot
traffic in May of this year relative to the same time in 2011. The data,
provided by SentriLock, LLC., is based on the total number of visits to
properties as recorded on electronic clock boxes. Foot traffic was lower over
the 12 months ending in May in 60 percent of the markets, while 35 percent
expanded and 5 percent were unchanged. This moderating pattern suggests a broad
based decline in the late spring following an equally broad-based expansion in
the late spring/summer of 2011 and early spring of this year.
Multiple bids are changing the playing field in a number of markets this spring
and summer. Many agents new to the business who have little experience with
them are dealing with a sudden and unexpected competition for homes brought
about by inventors more than 20 percent below those of a year ago.
“Remember the “Roaring ’90s?” Those days when you could list your house on
Friday and on Saturday people would be parked in your driveway writing offers
and good faith checks on the hood of their cars? Multiple offers were the norm
and offered sellers a generous selection of offers from which to choose.
Believe it or not. we are experiencing a trend toward multiple offers even in
this still difficult market and there is evidence that this trend will continue
as buyers compete in a market with limited inventory,” reported REALTOR® Noel
Crider of Auburn, Calif.
“The Phoenix Metro Area Housing Market faces multiple offers even in the higher
end and luxury market as buyers try to snag homes before the market rises
further. We have seen multiple offers for quite some time in the lower price ranges,
but now as the market is returning, and returning strong, we are seeing
multiple offers in the higher price ranges. We are now seeing multiple offers
on homes in the move-up and luxury home market. We are seeing offers that are
$50,000 over asking that are not the winning bid. This is causing quite a bit
of frustration as buyers are trying to get into a home before the market prices
go up further,” reported Brenda & Ron Cunningham, real estate professionals
in Arizona.
In Seattle, multiple offers on beginner houses in Seattle are common again
reports Phil Leng of Kirkland, Wash. and in Austin, broker Gwynn Teal Carpenter
reports, “It’s happened again! We are in one of those real estate markets where
we are seeing homes with multiple offers. In Austin Texas, the market is so
sizzling hot that it isn’t unusual to have more than 2 offers on a fantastic
priced and conditioned home.”
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