The spring housing market unofficially began over Presidents Day weekend, and NAHB reports that 40% of potential buyers say they’ve been outbid at least once.
NEW YORK – The spring housing market season unofficially began last Presidents Day weekend, but experts warn that an uptick in buyers may lead to more frustrated buyers since bidding wars are off the charts even as home prices continue to skyrocket.
A new National Association of Home Builders survey found that about 40% of potential home buyers haven’t made purchases because they keep getting outbid.
Similar results were recorded by Redfin. In their survey, 56% of buyers faced a bidding war in January 2021, up from 52% in December 2020, and more than half of homes now go under contract in less than two weeks.
Daryl Fairweather, chief economist at Redfin, expects bidding wars to be even more common in the spring season, and she advises homebuyers to get preapproved for a mortgage and see properties as soon as they hit the market.
Buyers also should know to walk away when a home’s price gets higher than what they’re willing to pay.
The bidding wars come as the market has record low supply and strong demand, driven by the stay-at-home culture of the COVID-19 pandemic and lackluster homebuilding. Record-low mortgage rates only fueled demand even more.
Source: CNBC (02/13/21) Olick, Diana
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