Low Prices Lead to Bidding Wars in Some Markets

This is an article by JAMES R. HAGERTY of the Wall Street Journal from 4/23/2009.
As we have been discussing, the low prices are generating accelerated sales activity in some markets.
The prices are still not going up due to the consistent pressure from bank-owned inventory. However as more buyers’ interest is present, it signals that the window to get the best opportunities is showing some finiteness. In my opinion it will still be at least a year as far as a great window to buy bank-owned properties. Nevertheless the data in this Wall Street Journal article stresses the fact that prices are certainly so attractive so as to generate multiple offers.
The excellent table also shows inventory positions in the most relevant markets.
Unfortunately the new “conforming” loans for people with over-4-but-under-10 mortgages are not ready to be delivered by the banks yet. If they were this would make the buying of these properties even more attainable to a lot of experienced investors. We hope this gets rectified in the very near future (banks are saying things like “Any Day Now”.
Cash offers trump most other offers so there is an increasing number of cash buyers. Foreigners who, for the time being don’t get much in the way of loans, are also resorting to buying cash.
Articles such as this, which are cropping up regularly as of late. Show the general direction.

Prices Are Generally Falling, But a Few Markets Have Shortages of Midpriced Homes
By JAMES R. HAGERTY, WSJ.COM, 4/23/2009

Bidding Wars Are Emerging on Foreclosures

 

Falling home prices are starting to ignite bidding wars in a few parts of the U.S. as first-time buyers compete with investors for the same foreclosed properties.

In most of the nation, the supply of unsold homes continues to swamp demand. Home prices in many markets continue to fall, and foreclosures, which slowed in late 2008 as mortgage companies delayed taking action against delinquent borrowers, are picking up again.

But real-estate brokers say multiple offers on certain homes have recently become more common in parts of California and Arizona and the Washington, D.C., and Minneapolis-St. Paul metropolitan areas.
Read full article on WSJ.COM