A recent report from Redfin states that bidding wars have returned in several crucial housing markets, which is a positive sign for home sellers. Despite the deep decline in homebuyer numbers in November, mortgage rates have come down to just above 6% and this has led to an increase of 28% in mortgage applications.
Redfin agents have reported an improvement in the number of customers requesting first tours and those contacting agents to initiate the home buying process. An agent based in San Jose has reported seeing more homes going under contract this month compared to the entire fourth quarter.
Interest in bidding has increased in Seattle, central Florida, and Richmond, VA. A Seattle-based agent reported a listing that received 12 offers and is under contract for $155,000 over the listed price of $1.4 million.
Homes in desirable locations with recent upgrades or renovations are getting multiple offers. Yours truly renovated the kitchen and bathroom of a South Hill Spokane house that saw little interest last fall and had three showings the day after re-listing it on February 3 for about 50k higher than the last listing price. An agent in Tampa has seen three modest single-family homes priced around $300,000 in central Florida go into bidding wars this month. In Richmond, homes in desirable school districts and priced well are selling within days or even hours, according to an agent there.
In conclusion, the return of bidding wars in several housing markets indicates optimism among home sellers and the growth in home buying interest. It isn’t surprising that lower mortgage rates are contributing to the current increase in interest in real estate. Buyers look at homes in terms of monthly payments, not in terms of the absolute price. When interest rates go down, affordability goes up and more buyers are available at a certain monthly payment amount.
https://www.globest.com/2023/01/27/bidding-wars-are-back-in-key-home-markets/
Contact Deepak Malhotra if you need help with real estate investing. Even if you are not looking in Cheney, Medical Lake, Airway Heights, or the Spokane area, mentoring services or referrals can be provided.