Supply Not Catching Up To Demand Concerning The Housing Market

Homebuyers are seeking brand new properties to call home, only to find less houses available on the real estate market. All throughout California, there are a shortage of houses. This is making potential homeowners bid fiercely for the properties that are available, amazing sellers who find themselves in the middle of a bidding war.

Homes are going fast, even for properties that would normally sit on the market for long lengths of time due to their poor location, being overpriced or are in need of large renovations. Properties are receiving multiple offers as these bids are going well above the asking price.

The areas in the real estate market that are seeing the most decline in home inventory are REOs, short sales and distressed properties. Prices remain relatively low on these homes with buyers seeing themselves in a fierce market competition.

So what is the reason for this competition? Perhaps it’s because more homebuyers can afford the mortgage financing as this is based on reports by the National Association of Realtors (NAR), according to Realty Times. Homebuyers are locking down relatively low interest rates on their home loans as they are bringing in enough income to purchase these properties.