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Summary: While the economy took a major hit because of the coronavirus pandemic, the real estate market has been booming lately. And as such, there is a great demand for housing, which is sparking bidding wars. This article will explain more about the increase in bidding wars among homebuyers across WA, ID, OR, and CO.
Over the past several months, in spite of the ongoing COVID-19 pandemic, there were more than a few signs that the economy was poised for a comeback. With the potential for everything to turn around, the market was hopeful that homebuyers would be house hunting once again.
Towards the end of the summer, the real estate market definitely seemed to be picking up steam as buyers began relieving their pent-up demand for a new home, and sellers finally started listing their properties after postponing their sales over the pandemic. However, buyers quickly learned that they might have to brace themselves for a lot of competition.
With summer and early fall being historically hot times for homebuyers all over the country, experts are pretty confident that buyers need to get ready for a bidding war.
There are not a lot of homes on the market right now, as sellers are still a bit reluctant to put their homes back on the market, especially since the economy still very much recovering. That said, the supply-demand dynamic has been an issue throughout the Pacific Northwest, with inventory being very tight across many housing centers. And with a limited or tight supply comes more competition among buyers who may be vying for the same properties.
The end result is that there is a disconnect between supply and demand. This imbalance is causing home prices to climb upward as homebuyers get into a bidding war. In light of these events, it is imperative for buyers to team up with a seasoned real estate agent and get pre-approved for a mortgage.
Many homebuyers are surprised that prices are actually rising instead of falling. When the last recession hit, home prices actually fell significantly. This is because mortgage defaults were the cause of the last recession, which is why home prices fell so dramatically.
The cause of this economic downturn is different. Due to a limited supply of homes, there is more competition among homebuyers. More competition leads to handfuls of offers for a single home, and a bidding war.
In Seattle, the average home price has increased 10.61% over the past year, while in Boise, prices have skyrocketed 14.7% since the same time last year. These are just a couple of examples of how home prices are still on the rise, despite uncertainty going forward.
In order to find the right home, homebuyers need to place themselves in a position to compete against multiple offers from other homebuyers. And to do that, buyers should follow a few helpful tactics. Some of the most important tips to follow include:
Ultimately, these are just a few ways to put forth a competitive offer and to prepare for the challenging real estate market ahead.
Do you have questions about home loans? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.
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