Where is the house inventory????? (renting, to buy, depreciation)
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I think your question got lost in the flurry of economic forecasts. This is my second spring. Is that a long time? We keep being outbidded, which is a sad statement regarding my finances, not expectations! I think we make healthy offers, but houses in WF are going over asking price. Since the job market is not hot, and the rates are rising, I thought we would have more inventory and less bidding wars. I guess I was incorrect. My question is not about the economic policies and desirability of living in WF. My question is whether from historical experience of WF dwellers, does inventory go up during the summer, or does it go down because at that point people will not be able to get their kids into schools in September. Just looking for factual information.
I think your question got lost in the flurry of economic forecasts. This is my second spring. Is that a long time? We keep being outbidded, which is a sad statement regarding my finances, not expectations! I think we make healthy offers, but houses in WF are going over asking price. Since the job market is not hot, and the rates are rising, I thought we would have more inventory and less bidding wars. I guess I was incorrect. My question is not about the economic policies and desirability of living in WF. My question is whether from historical experience of WF dwellers, does inventory go up during the summer, or does it go down because at that point people will not be able to get their kids into schools in September. Just looking for factual information.
This often happens when one has exhausted the market in a desirable location and can't find anything they deem "buyable". They then go into "check out the new listings as they come aboard" mode. And of course, every time a really good house hits the market, there are multiple people interested and often a bidding war. The best way to handle this is come in over asking right away. In fact, forget the asking price altogether and look at recent closed sales and homes in contract. If they are asking $750,000 and recent contracts are at $800,000 for very similar homes, don't even bother with a $735,000 offer, just go final and best $800,000 right away.
Another way to handle this is to forget the new listings. Go over everything that has been on the market over 40 days with a fine tooth comb, find something suitable if not "the dream", establish a fair market value, and then go in with a low but accurate offer supported by lots of evidence. The contract should include a thorough and convincing market analysis (presuming your agent knows how to do one of those - not many do).
There are presently over 75 active listings in Westfield that have been on the market for 40 days or over. There has to be something in that inventory that you could survive in. After 40 days, bidding wars are not nearly as likely.
I think your question got lost in the flurry of economic forecasts. This is my second spring. Is that a long time? We keep being outbidded, which is a sad statement regarding my finances, not expectations! I think we make healthy offers, but houses in WF are going over asking price. Since the job market is not hot, and the rates are rising, I thought we would have more inventory and less bidding wars. I guess I was incorrect. My question is not about the economic policies and desirability of living in WF. My question is whether from historical experience of WF dwellers, does inventory go up during the summer, or does it go down because at that point people will not be able to get their kids into schools in September. Just looking for factual information.
if you've been looking for a year straight, I'd consider that to be a long time myself. that would drive me crazy having to deal with keeping track of the listings, going to showings etc.
i don't closely follow the inventory levels, but i think it's pretty typical here vs. everywhere else. a flurry of new listings late winter into spring, then pretty steady throughout the year.
bidding wars stink, i personally wouldn't ever get involved in one. too much drama for me. there will always be another house.
I think your question got lost in the flurry of economic forecasts. This is my second spring. Is that a long time? We keep being outbidded, which is a sad statement regarding my finances, not expectations! I think we make healthy offers, but houses in WF are going over asking price. Since the job market is not hot, and the rates are rising, I thought we would have more inventory and less bidding wars. I guess I was incorrect. My question is not about the economic policies and desirability of living in WF. My question is whether from historical experience of WF dwellers, does inventory go up during the summer, or does it go down because at that point people will not be able to get their kids into schools in September. Just looking for factual information.
You will see little uptick in inventory over the summer and to the extent new listings hit the market I expect continued bidding wars as there simply isn't enough supply to satisfy current demand, which has been pent-up (on the sidelines waiting for signs that it is safe to enter the waters again) for a few years. Now that everyone is convinced it is a safe time to enter the market again a herd mentality has taken hold again and EVERYONE is now moving into the market, which has created a very unfavorable buyers market as too many buyers are chasing too few deals. You're now seeing offers the first day of the open house, offers over the ask price, and all-cash bids. My friend was outbid and he bid over the ask price AND included an "escalation" provision in the contract. He was outbid by someone that exceeded his "escalation limit", roughly $50k more than the ask. This dynamic is not going to change soon as interest rates will remain low even though they will increase slightly and there is no new product being built as banks are very leery of financing new development. The best thing to do is buy something that is not the "center of the fairway" and needs some work. That way you avoid a bidding war and are able to make your offer stand out. For the best in class product, the competition is going to be fierce for foreseeable future.
NOBODY expects an economic debate. Our chief weapon is surprise. And fear. Our two weapons are fear, and surprise, and a ruthless efficiency, our three weapons are fear, surprise, ruthless efficiency and an almost fanatical devotion to the pope.
Our *four*...no... *Amongst* our weapons.... Amongst our weaponry...are such elements as fear, surprise.... I'll come in again.
You will see little uptick in inventory over the summer and to the extent new listings hit the market I expect continued bidding wars as there simply isn't enough supply to satisfy current demand, which has been pent-up (on the sidelines waiting for signs that it is safe to enter the waters again) for a few years. Now that everyone is convinced it is a safe time to enter the market again a herd mentality has taken hold again and EVERYONE is now moving into the market, which has created a very unfavorable buyers market as too many buyers are chasing too few deals. You're now seeing offers the first day of the open house, offers over the ask price, and all-cash bids. My friend was outbid and he bid over the ask price AND included an "escalation" provision in the contract. He was outbid by someone that exceeded his "escalation limit", roughly $50k more than the ask. This dynamic is not going to change soon as interest rates will remain low even though they will increase slightly and there is no new product being built as banks are very leery of financing new development. The best thing to do is buy something that is not the "center of the fairway" and needs some work. That way you avoid a bidding war and are able to make your offer stand out. For the best in class product, the competition is going to be fierce for foreseeable future.
I said this about the fools who were bidding up prices a few years ago and I will say it about your friend. They are fools. Honestly I know this is not the norm here in Jersey as prices have risen very moderately the past year and for the fools that get caught in this game they deserve what they get just like the last batch of fools. Please dont ask for a bailout when your house loses value.
And interest rates should rise a bit too as the Fed pumping pulls back. There are no indications that inventory will increase and there continues to be more buyers than sellers so prices will remain high or continue to increase. If I was the OP I would not count on things quickly becoming a buyers market. That time has passed (for now) and the pedulum is now back in favor of the seller.
What exactly is this huge run up in prices you are speaking of? Please provide with some source. Thanks.
if you've been looking for a year straight, I'd consider that to be a long time myself. that would drive me crazy having to deal with keeping track of the listings, going to showings etc.
i don't closely follow the inventory levels, but i think it's pretty typical here vs. everywhere else. a flurry of new listings late winter into spring, then pretty steady throughout the year.
bidding wars stink, i personally wouldn't ever get involved in one. too much drama for me. there will always be another house.
this.
Over a year to find a house? I also consider that a long time. If you keep getting outbid, you arent offering "market rate". Time to $h!t or get off the pot. How many houses have you seen?? Honestly. Might be time to *gasp* look outside of WF
Looking for two springs is not the same thing as looking for over a year. There is nothing to look at between October and March. We had some time to look and we were looking for a house that is decent and would not require work. Nothing extraordinary, no insane demands regarding size or location. I am tied to WF for personal reason, no need to get crude about it in the responses. What I do not like is that we see houses that are decrepit and expensive. And those that are not decrepit, yet still expensive, get into bidding wars. So, I thought there will better inventory, and now that the inventory is low and repetitive I was wondering about it. I pretty much got my answer regarding the flow of inventory. Thank you very much to the nice respondents, and peace to the rest!
Looking for two springs is not the same thing as looking for over a year. There is nothing to look at between October and March. We had some time to look and we were looking for a house that is decent and would not require work. Nothing extraordinary, no insane demands regarding size or location. I am tied to WF for personal reason, no need to get crude about it in the responses. What I do not like is that we see houses that are decrepit and expensive. And those that are not decrepit, yet still expensive, get into bidding wars. So, I thought there will better inventory, and now that the inventory is low and repetitive I was wondering about it. I pretty much got my answer regarding the flow of inventory. Thank you very much to the nice respondents, and peace to the rest!
And as I said in prior posts, rates will be increasing the Fed takes its foot of the pedal. Why 3% mortgage rates are a thing of the past - Jun. 6, 2013 All that said, expect high prices and bidding wars to continue. The good times are back!
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Here we go again
