If you’ve been sitting back, waiting for the housing market to improve, it’s time to get your ducks in a row. The housing market is advancing, and there’s real proof to be seen. It’s not just in the numbers, but also in the bidding wars that are taking place across the U.S. These wars are bigger and badder than ever, with some homeowners watching their homes being sold for more than what they asked for.
What’s the big deal with bidding wars in the first place?
Currently, there is very low inventory out there, so for people looking to buy, there’s not much to choose from. Homeowners are still holding on to their properties and waiting for a better market, contributing to the limited inventory. When a family finds the house they want, they’re not afraid to fight for it, which may mean paying more for it. They know they can’t just turn around and find something comparable within a few days or weeks, so they have to be aggressive.
That’s where the bidding wars come in. And, for homeowners, this can mean more money in their pocket as well as a quick sell time.
Bidding wars are also beneficial for the housing market at large. These bids create buyer activity; after all, only one person wins. That means the other two or three or five people bidding on the house will continue looking for another comparable home, and this continued activity pushes more people to list their homes and ask higher prices.
It’s not uncommon for homes in New Jersey to see five, six or even seven bidders on a house. Since New Jersey has a prime location, with some counties a mere 20 minutes from NYC, the suburbs remain a great place to buy a home. And, this is what fuels bidding wars even more. Interest rates and housing prices are slowly climbing back up, which means the “best time to buy” is behind us. Buyers know that their window of opportunity is short, so they must buy NOW to get the best rates and home prices.
Bidding wars are created whenever demand is high and supply is low, and this can quickly change at any time. So, whether you’re interested in selling or buying, the market is hot right now. It’s a win-win for everyone, and we can only hope this trend will continue.