Buyer's, you may not be in a buyer's market for much longer.
- At Family Reunion (Keller Williams Convention) in February, a panelist from Ann Arbor talked about his market turning in 3 weeks with multiple offers coming in on everything.
- In Las Vegas a team leader told me they had a 2 1/2 month inventory with multiple offers on everything.
- An REO agent in my office in Big Bear told me she's entertaining multiple offers on everything the bank will let her price right.
- My buyers just entered into a negotiation on a house in Big Bear Lake that was on the market for 1 day and lost out to 2 full priced offers while they were deciding to sign the Seller's counter.
- My Seller got two offers on a house in Big Bear City and while waiting for buyer responses to his multiple counter, he got a third over asking offer.
One of my buyers said he wasn't worried because the uptick in interest rates would hurt the market.
I have come to believe that that increase might be spurring the shift.
There have been so many buyers worried about getting in and losing equity to a still declining market, but they know they want to get in. Now they're seeing home prices below what it costs to build and interest rates rising above all time lows.
Is this triggering a reaction in saavvy buyers? I think so, and it should. After all a 1 point increase in interest rates reduces a buyer's purchase power by 10.75% if relying on a loan.
Inventory is low in a lot of places, buyers are ready, interest rates are rising. If you love the house be prepared to walk in with a full price offer. It will probably mean you will actually be paying less because you get to avoid a bidding war.