Home buyers experience bidding wars

Homebuyers are unexpectedly finding more competition this spring (2012) in securing their offer onf their home. The Wall Street Journal is reporting that price bidding wars are increasingly being reported in markets across the country, from California to Florida.

This is true of Orlando real estate in Central Florida especially in certain neighborhoods like, Baldwin Park, Hunter's Creek, StoneyBrook, Avalon Park, Bay Hill/Dr .Phillips and others.

 Homebuyers can become frustrated and caught off-guard about the bidding wars re-emerging.

 Why are things getting so competitive? Many housing markets are seeing a drastic decrease in the number of homes listed for sale, leaving homebuyers with fewer options and more bidding on the same house.  Some real estate  analysts say the shortage in supply is from sellers unwilling to take much less for their home than what they originally paid for it and pulling homes off the market. Also, a surge in investors who snatch up homes in bulk in all-cash deals has made the market competitive.

The National Association of Realtors® latest pending sales report confirms the trend. Pending sales in March reached their highest level in nearly two years and are up 12.8 percent from one year earlier.

Source: “Stunned Home Buyers Find the Bidding Wars Are Back,” The Wall Street Journal (April 27, 2012)