More active buyers are finding their homebuying journey extended as bidding wars rage on. According to a new survey by the National Association of Home Builders, 56% of homebuyers faced bidding wars in January, a 4% increase from just one month prior. Bidding wars are the primary reason many homebuyers remain unsuccessful in purchasing, with 40% of survey respondents citing counter offers as their main obstacle. More than half of homes are sold and under contract in less than two weeks, reports CNBC. And Redfin’s chief economist says bidding wars will become even more common as housing inventory remains low.
“With so few new listings hitting the market, I expect bidding wars to become more common and involve even more potential buyers as we head into the spring homebuying season,” said Daryl Fairweather, chief economist at Redfin.
She advises buyers to be ready to go see properties the moment they hit the market and to get preapproved for a mortgage.
“But know when to back away if the price escalates more than you’re willing to pay,” Fairweather added.
Advertisement
Related Stories
New-Home Sales
More Than Half of All Homebuyers Say They Prefer New Homes
This trend comes as the price gap between new and existing homes narrows
Demographics
Gen Z, Millennials Find Creative Paths to Homeownership
High mortgage rates are causing younger generations to ‘house hack’ or move back home with their parents
Housing Markets
10 Housing Markets With the Highest Rate of Investor Homeownership
Cities with the highest share of investor homeownership are also the places seeing a slowdown in the market due to high costs