First-time homebuyers are faced with a tough challenge in this busy, crazy spring home buying season. As more buyers and investors flock the market this season, inventory has reached its lowest in 25 years, which has resulted in an increase in selling prices of homes and tough bidding wars. Given this scenario, can first-time buyers still win in bidding wars and secure a home for themselves?
The inventory of homes across the U.S. has reached its lowest in 25 years, reports Realtor.com. This is a result of the increase in the number of buyers and investors flocking the market to secure a home in this busy spring buying season.
This has made it extremely difficult for others to find a home to live in, especially for first-time buyers. The shortage of available homes in different states in the U.S. has led to a surge in the prices of homes listed for sale in the market.
As previously reported here on Realty Today, buyers have been flocking the market to take advantage of the low mortgage rates. Unemployment rates are also at its lowest in eight years, which definitely attracted a lot of buyers into securing a home for themselves this year.
One of the strategies to win in bidding wars is to, of course, give the highest bid. Unfortunately, this could mean that you will need to pay more than what you were initially expecting.
This makes it extremely difficult for first-time buyers, especially those who are just starting to establish their careers.
"Inventory is very restricted, which is creating bidding wars and pushing up prices. That makes it a very tough environment for many buyers," said senior vice president at RealtyTrac, Daren Blomquist.
In Dallas alone, prices of homes in the market rose to 9.2 percent in January compared to its prices from a year ago. Fortunately enough, homes in Las Vegas are still keeping up with the financial cycle and there are still enough homes for sale in the area for buyers.