As the Market Turns…Here Come the Multiple Offers

August 25th, 2009 categories: Central Connecticut News & Information, Real Estate Market

With the first time home buyer credit set to expire, interest rates low and the feeling that maybe all this good stuff is about to come to an end (with inflation, higher taxes, e.g.), home buyers have a sense of urgency that they haven’t had in years. This is the stuff of a seller’s market. This is gettin’ while the gettin’s good.

What’s my evidence?

I called yesterday to set up a showing for an average home in Rocky Hill and it’s gone after two days on the market. Three offers, baby.

I spoke to a listing agent yesterday about two of her listings in Wethersfield. Four offers between the two. Both on the market for months before getting any offers.

I had three offers on my listing Avon and just received another call on it from an agent asking to write a back-up. On the market for over a month with no offers.

Anecdotal evidence to be sure but when each agent I talk to says the same thing - one minute there’s no interest and all of a sudden there are two or three buyers or that homes that have been sitting for months are suddenly selling, I know there’s something going on.

The Bad News for Home Sellers

There is still a lot of inventory out there. Not all towns are seeing this type of activity. Not all homes are getting the activity. This uptick in the market is selective. Home sellers should not take the surge in the market for granted. You still need to have a well-priced home, in a desirable area, with features people want for the price.

The Bad News for Home Buyers

If you happen to be shopping in a price range and town that is hot, get ready to pay asking price. Or, wait until Congress approves (maybe) another $8,000 credit.

Maybe this is temporary. Maybe it’s the last heartbeat before the patient dies. Maybe it’s the start of a climb in overall real estate prices that will last into next year. Who knows but all I can tell you is that don’t be surprised if there are multiple offers and don’t be surprised when there isn’t. It’s a weird market out there.

http://www.youtube.com/watch?v=pEx8ZT2iR64