RealtorMag reports that a lack of inventory in homes for sale has led to a buying frenzy by potential homebuyers.
The National Association of REALTORS reported a 13 percent jump in May’s number of contract signing on existing homes from last year–a clear indicator that the days of finding the “deal of the century” may be long gone.
The lack of inventory has ignited the competitive spirit, causing “bidding wars” among those looking to buy.
Meanwhile, home owners are strategically waiting to put their homes on the market until market prices increase. NAR projects an increase of existing-home prices by 3 percent for this year. A smart move for the home seller, right?
According to Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business, “most houses below $250,000 priced realistically are attracting large numbers of offers in a short time, and many exceed the asking price.”
Article Source: Lack of Inventory Causing a Buying Frenzy?