You have to be joking, right?  Are you telling me that bidding wars are starting to occur for homes for sale?  In case you fell asleep for about 5 years, this isn’t 2004.

In all seriousness, this market is changing and local pro’s can feel it and are acting according in many locations across America.  The interesting thing is that the “regular” house buyer market is still weak but the professionals are grabbing properties like the San Francisco gold rush.

biddingwar

There are several things that are driving this and point to a recovery in the regular housing market:

  • Bidding wars now for severely discounted properties;
  • Record rental returns;
  • Unbelievable amounts of CASH BUYERS moving in; and
  • A 3 month trend started in regular home sales.

Bidding Wars

Bidding wars are literally occurring for severely discounted bank REOs and short sales.  Consider this quote from a recent Pheonix Market Trends:

“We have a short sale coming on the market soon at a normal market price.  Currently it’s being prepped and he tenant is moving out, though we have put a few ads out there to see the reaction and create an auction effect which will possibly give us several strong offers to present tot he lender and get this property sold.  The response is quite amazing.  We have a long list of people just waiting for it to come on the market.”

Now, there are an average of 5 offers per home, if priced appropriately.