Just yesterday on The Wall Street Journal online there was an article published called,”Stunned Home Buyers Find the Bidding Wars Are Back“. You may be surprised to find out that it is in fact true. The spring sales season has caught quite a few homeowners off guard with the return of bidding wars. Looking at the news, you would think there was a surplus of homes just waiting to be taken of the market, but as it turns out, today’s bidding wars are a result of supply shortages.
Competitive bidding in the current environment isn’t producing huge price increases or leaving sellers with hefty profits, as occurred during the housing boom. Still, the bidding wars caused by tight inventory provide the latest evidence that housing demand is starting to pick up after a six-year-long slump.