by Marc Dosik
sponsored guest contributor

Homes are selling fast lately. More than half of all home sales are going under contract in less than two weeks. More than half of all home-buyers (56%) are facing bidding wars in their offers, and that number keeps rising. It is the main reason keeping home searchers from buying a home — they keep getting outbid.

The pandemic has created a set of circumstances that contribute to the bidding war culture. There are very few listings hitting the market, and would-be sellers are holding off selling their homes rather than go through the ordeal of having strangers visit their homes during Covid. This leads to a very small inventory of available homes.

Nationwide there is record-low supply of homes for sale. But the pandemic has also created sudden strong demand. It has caused Americans to stay-at-home more than ever, often even working from home. It’s more important than ever to have a home that is desirable to both live and work in.

Additionally, new home construction has dwindled, and record-low mortgage rates fuel demand even more. One economist stated that the low cost of money has encouraged buyers to be more aggressive and willing to overpay for properties. The net result is strong demand facing limited supply, and it’s causing home prices to go up. The median listing price for a home was up nearly 13% compared to January 2020.

Spring is a home-buying season. This year, with few new listings hitting the market and even more potential buyers looking to buy, bidding wars are expected to become more common. Competition is fierce across the nation, but it seems to be worse in the Western cities. The worst was Salt Lake City, where 9 out of 10 offers faced competition this past January.

Economists have some advice for homebuyers: be ready to go see properties the moment they hit the market, and get preapproved for a mortgage. And… they need to know when to back away if the price escalates too high for their liking.

For more ideas, reach out to Marc Dosik from Century 21/Redwood Realty at 843 Upshur Street NW, or call 202.543.7283.