Real Estate Bidding Wars Return


 
NEW YORK – July 21, 2015 – Bidding wars are returning to U.S. real estate markets with too few homes for sale.
A number of events led to the current lack of homes for-sale inventory, including an unexpectedly sluggish rebound in home construction. At the same time, millions of homeowners aren't listing their home because they don't believe they'll qualify for a new mortgage, or that they cannot afford the costs associated with a sale.
As of May 31, there were 2.3 million existing U.S. houses on the selling block – enough inventory to last 5.1 months at the current sales pace but shy of the six to seven months of supply that typically signals a balanced market.
But in more than 33 percent of the 300 biggest metro areas tracked by Realtor.com, listings have been on the market a median of less than two months, indicating a rapid turnover as demand for residential properties exceeds supply. Those include such large markets as Dallas and San Francisco along with smaller markets like Vallejo, California, and Kennewick, Washington.

Even in the face of a tight home listing inventory, some economists hope renters will add demand to the sector as rent increases continue, prompting many to pursue ownership. Apartment rents have climbed almost 16 percent in the United States since 2010, calculates Reis Inc. Article courtesy of florida realtors.
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