More active buyers are finding their homebuying journey extended as bidding wars rage on. According to a new survey by the National Association of Home Builders, 56% of homebuyers faced bidding wars in January, a 4% increase from just one month prior. Bidding wars are the primary reason many homebuyers remain unsuccessful in purchasing, with 40% of survey respondents citing counter offers as their main obstacle. More than half of homes are sold and under contract in less than two weeks, reports CNBC. And Redfin’s chief economist says bidding wars will become even more common as housing inventory remains low.
“With so few new listings hitting the market, I expect bidding wars to become more common and involve even more potential buyers as we head into the spring homebuying season,” said Daryl Fairweather, chief economist at Redfin.
She advises buyers to be ready to go see properties the moment they hit the market and to get preapproved for a mortgage.
“But know when to back away if the price escalates more than you’re willing to pay,” Fairweather added.