Each month, the National Association of REALTORS® obtains up-to-date and on-the-ground incisive comments from REALTORS® who participate in the REALTORS® Confidence Index (RCI) survey. The RCI survey tracks expectations about overall market conditions, buyer/seller traffic, price, buyer profiles, and issues affecting real estate. The full report can be found here.
The selected comments reflect the general sentiment expressed by REALTORS® who participated in the October 2012 survey, conducted from October 22 through November 5, 2012. All real estate is local and conditions in specific markets may vary from the national trend.
Low Inventory/Multiple Bidding
REALTORS® reported that the inventory of homes for sale remains very tight, resulting in multi-bidding in some cases. REOs and other properties do not appear to be coming on market sufficiently to meet demand, while sellers are also waiting for prices to pick up further. Listings for properties that are in good condition are reported as receiving multiple offers. Investors are snapping up REOs, paying cash.
Here are few direct quotes:
- “I feel that the price of housing is going up due to the lack of inventory that is available, once the banks start releasing more property’s I feel that it will become a more stable market and the bidding war will end!!”
- “Inventory still down, sellers waiting for prices to go up if they can; rental market is way up, prices too.”
- “Buyers want properties in A1 condition. Investors are out there & will do the work to get property in A1 condition but only at a rock bottom price.”
- “Foreign investors focused on foreclosures make up most of our potential buyers.”
- “All entry level single family homes are multiple offer. Many homes are sold to investors prior to reaching the MLS, then within hours of listing on the MLS, it changes from active to under contract.”