Bidding Wars Between Twin Cities Home Buyers: Best To Buy Now Before Twin Cities Home Prices Rise Further?
Home buyers eager to purchase before home prices and mortgage rates rise are finding few Minneapolis homes for sale as sellers hold out for better deals, said Glenn Kelman, Redfin's CEO. In March, 75% of agents with broker Redfin said their clients' offers were countered by rival bids, up from 56% who said so in late 2011. Low Twin Cities housing inventory is contributing to bidding wars amongst prospective home buyers.
What If Both Home Prices And Interest Rates Rise?
The lack of Twin Cities housing inventory is forcing some home buyers to compete for fewer homes escalating the number of multiple offers and bids above asking price are becoming increasingly common. Some home buyers are finding it hard to decide if it is best to pay more for a home today, compared with a year ago, or to possibly pay even more later this year at a time when interest rates might also be higher.
Underwater Homeowners Benefit From Rising Twin Cities Home Prices
Many homeowners are still underwater, meaning that potential Twin Cities home sellers that owe more on their mortgages than their homes are worth, are waiting until they believe that selling their home has become profitable again. Some think that by waiting to list their home for sale, they can avoid short sales, which often damage individual credit scores somewhere between 85 to 160 points, according to FICO. FICO delivers superior predictive analytics solutions that drive better informed home buyer decisions across the housing industry, among others.
"We are coaching prospective Twin Cities home sellers that today it is not whether a new listing will get multiple bids, it is about how many and how fast a new home listing will gain incoming purchase bids. Real estate analytics are attributing the steep rise in the number of bids to rapid price appreciation across the Metro," says Jenna Thuening, owner of Home Destination.
Exactly where mortgage rates and home prices are at the time of a home purchase determine much concerning buyer options and where the new owners monthly home payments will come in. The benchmark 30-year fixed-rate mortgage fell to 3.73 percent from 3.75 percent, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average total of 0.3 discount and origination points. One year ago, the mortgage index stood at 4.25 percent; four weeks ago, it was 3.73 percent.
Construction of New Homes Limited By Lot Shortage
Home prices continue to be driven upwards with the supply and demand off balance. With housing inventory numbers too low, cries for home builders to increase production of newly constructed homes are being echoes. However, home builders are additionally facing a shortage of available quality lots in desirable locations to buy and build on. "I think the problem will get progressively worse as we have chewed through the inventory of lots, and then it will take a little while to bring new lots online to hopefully fill a demand that should be there," said Walt Hibner, executive director of Home Builders Association of Dayton.
Home Buyers Must Be Well Prepared For Bidding Wars
A Boston Business Journal analysis of MLS Property Information Network data says that more frequently homes are selling for over their asking price. Some housing districts, like Boston, have more than doubled the number of home selling over their posted price in the past year. A total of 512 buyers paid more than the list price in the Boston metro area from Dec. 1 through March 6, up from 218 in the same period a year ago. Mortgage rates under 4 percent and a limited inventory of homes are driving buyers to compete with one another. Jenna Thuening, owner of Home Destination sees much the same happening in the Twin Cities. "Home Buyers need to come to the table well-prepared before putting in a purchase offer to have a solid chance to be the winning bidder. We have tipped the scales toward the Twin Cities becoming a home sellers market at the moment," says Thuening.
Read the full article on Twin Cities Home Prices Are Above National Average. If you would like a FREE consultation to better determine what kind of home you should look for, contact Jenna Thuening by calling 612-396-7832 today! I will help guide you through the intricacies of today's bidding wars between Twin Cities home buyers.
Jenna Thuening, a residential Realtor helps home buyers fare well as Twin Cities bidding wars erupt between home buyers.11200 W. 78th St
Eden Prairie, MN 55334
Jenna's home page: homedestination.com
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