The current housing market creates the perfect recipe for bidding wars. Housing supply is low, buyers want homes that support their shifting desires, and there are record-low interest rates. Out of 1,000 homeowners who purchased between January and May 2020, 42% ended up in a bidding war, according to Forbes. When it comes to bidding wars, Forbes says buyers and sellers should know about Boomers’ wealth transfer boosting Millennial homebuyers, the power of cash bids, and current tight lending procedures. This increase in competition shows it is not the right time to low-ball an offer, as many potential buyers are willing to pay much more for what they want.
Just a few months ago, the real estate market – like many other industries – adopted a slower pace in response to Covid-19. Social distancing regulations prohibited in-person house showings in most parts of the country, and the future of buying and selling a home in the U.S. seemed uncertain.
Today, as regulations begin to lift, many are seizing the opportunity to buy a home that supports their health and happiness in society’s “new normal.” Though the national unemployment rate is still high, those who are working remotely have discovered they need more from their homes, including backyard space and private offices or “Zoom rooms.” For essential workers with high job security and strong cash reserves, now is the time to capitalize on record low interest rates and get the most house for their buck.