The beginning of 2013 brought the paradigm shift to a seller's market which is great, prices are on the rise but not so fast as to deter buyer's. It was projected that the Spring selling season would see faster increases in price than inventory. While this is true to a certain extent, it seems to be keeping pace somewhat. The results of the price increase has created a fair amount of market demand. This is most readily visible in the offer stage of a real estate transaction. Multiple offer situations are present nearly every time I contract a property for clients. It has proved difficult to explain to buyers why they need to pay more than asking price if they really love their potential new home. I have to advise clients plainly and simply, "If you really love this home, you're going to have to come in strong." It is what is is I suppose but it is creating a challenging and aggressive real estate market for sure.
Amidst all of the hypothesis and worries out there that another housing bubble is forming, I think we are safer than these predictions may indicate. The simple fact that the structure of mortgage pre-qualifications has changed so dramatically is helping to keep the problem under control. On the other side of the coin, it is making it difficult for otherwise well qualified buyers to purchase the home the desire. This is most notable with regard to the properties Quality and Condition. For example, a home that has bare concrete floors without any floor treatments would most likely not pass through underwriting standards with most lenders. This really is a shame because some of these properties are in great condition with the exception of missing floor treatments.
I suppose at the very least, the steady increases in price and value will help sellers feel more comfortable bringing their properties to market. This has already become somewhat obvious with slight increases in inventory but the bottom line is- we need to see more inventory.
