Bidding Wars Are Back for Summer

The housing market has become more competitive, with Realtors nationwide reporting that properties are selling quickly after receiving multiple offers. Redfin CEO Glenn Kelman estimates that 33 percent of homes are flying off the shelves within two weeks, with the percentage topping 50 percent in the San Francisco Bay area. While many economists bemoan a lack of demand among buyers, Realtors in such markets as San Francisco, Seattle, Boston, and Washington, D.C., say there is more demand than supply. Kelman notes, “Only people that have to sell are selling right now.” Underwater homeowners in particular are hesitant to put their homes on the market because they will owe money to their lenders at closing, and such a scenario will ward off a recovery, says Eric Belsky of Harvard University’s Joint Center for Housing Studies. Meanwhile, other sellers are waiting out the market in hopes of achieving a higher sales price in a couple of years — especially if they have no pressing need to move. However, Kelman is concerned that the European crisis could hurt the U.S. economy, which would jeopardize the housing market. | Read More