Bidding wars are on the rise and now are part of 90 percent of sales in San Francisco, Sacramento, and cities in Southern California and 67 percent of listings in Boston, the District of Columbia, Seattle, and New York. Redfin also reports that the number of agents reporting bidding wars jump to 75 percent in March from 56 percent in late 2011. A lean inventory as underwater homeowners wait for the market to improve has generated competition among buyers who want to capitalize on low property prices and mortgage rates, explains Redfin CEO Glenn Kelman. According to the National Association of Realtors, inventory dropped 19.2 percent during the year-over-year period ended in February; and real estate professionals say new home construction has yet to pick up steam. | Read More

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