With low inventory on the market and low mortgages rates, many buyers are entering into bidding wars to get the home of their dreams. According to Redfin, more than half of all offers were part of bidding wars in the month of June.
We have officially entered busy season for home buying. The sun is out, we are not in lockdown anymore and mortgage rates are the lowest they’ve ever been on average in history. With all of this good news, comes bidding wars. So, if you’re a home buyer or a potential home buyer, keep your eyes on the market. Things are going fast and for a lot of money.
The most competitive markets in the nation today are Boston, San Diego and Salt Lake City. Boston had the highest bidding war rate in June, of 72.4%, staying on top after 67.2% of offers had a bidding war in May.
The least competitive markets in the nation today are Miami, Chicago and Las Vegas. Only 32.4% of all offers went into bidding wars in Miami.
According to Redfin, the numbers of homes overall for sale in the month of June was down 21.3% year over year. The number of new listing was also down at 12%, leaving inventory at its lowest level since at least 2012.
The question is: How do you set yourself apart in a market that is competitive? Especially, if you are a first-time home buyer or a move-up buyer?
The first step is to get pre-approved. You want to know your maximum purchase price while taking into account how much money you are willing to put down on the property at close. If you are a first-time home buyer, you are probably thinking closer to 3%. It’s hard to stay competitive with a low down payment but there are ways to negotiate with your real estate agent to put your offer into a stronger position. Make sure you ask your real estate agent about contingencies and which ones you can waive to make your offer stronger.
Knowing your purchase price and the contingencies that go along with buying property can help you stand out from the rest of the buyers in the field. If you would like to get pre-approved today, reach out to us. We are always here to help guide you down the right path.