According to a recent article published by REALTOR® Magazine, “the buyer frenzy continues”! If you have gone through the buying or selling processes recently, you are likely no stranger to the fact that low inventory levels have led to buyers offering thousands, if not tens of thousands, above asking price, often waiving appraisals and inspections to be able to compete with their offer.
In addition to low inventory, rising mortgage rates have increased buyers’ sense of urgency to bid quickly and bid well so that they can get an offer accepted and secure a low rate ahead of further increases.
Mark Wolfe, broker-owner of RE/MAX DFW Associates, told the Dallas Business Journal, “Fifteen offers, 25 offers, we even had one last week with 97 offers—and the list price is the starting point…An agent in our firm received 17 offers on a property before they cut off receiving additional offers. Twelve of the offers were cash, all above list, and most buyers not even seeing the home. They are just grabbing.”
According to Daryl Fairweather, Redfin’s chief economist, “This is the strongest seller’s market since at least 2006…Buyers outnumber sellers by such a huge margin that many homeowners are staying put because they know how hard it would be to find a place to move to. It seems like the only move-up buyers who are confident enough to list their homes are those who are relocating to a more affordable area where they’ll have an edge on the local competition.”
Fairweather goes on to state, “Yes, some buyers are overpaying for homes, particularly those who are moving to affordable destinations and paying well over asking prices to win homes in bidding wars…But these buyers are often covering any shortfall in the bank’s appraisal amount and locking in low monthly mortgage payments that they can easily afford. As mortgage rates rise, I expect demand to settle down and be better balanced by more new listings as high home prices lure more sellers to the market.”
To learn more about how we at North Eastern Group Realty are tackling this unique, competitive market, reach out to one of our REALTORS® today. Click here to connect with an agent. You can also read the original article posted by REALTOR® Magazine, here.
At North Eastern Group Realty, we are prepared to assist our clients with their significant Fort Wayne real estate decisions. Our corporate commitment is to provide real knowledge, proven experience and professional, quality service. To search all Fort Wayne homes for sale or find a Fort Wayne REALTOR®, visit our website at NorthEasternGroup.com.
North Eastern Group Realty is Fort Wayne’s largest independent real estate company located at 10808 La Cabreah Lane, Fort Wayne, IN 46845.
One of a kind property conveniently located just north of Allen/Dekalb Co line! This custom built, one and half story has 4 bed/4 bath and overlooks a beautiful wooded 2 acre lot. Along with the main level master en suite you'll find an open concept kitchen/great room/dining, and loft area thoughtfully positioned to all enjoy...
It's that time again! Each month we provide a re-cap of how the market compared to the same month of the previous year. Staying aware of these trends is one reason why our North Eastern Group REALTORS® excel in connecting buyers and sellers with their dream homes. Take a look at the trends comparing February...