Bidding wars. Buyers paying cash. Homes selling for more than asking price. Are we entering another housing bubble? No. But prospective buyers in many markets may be shocked at the competitive nature of the home-buying process these days.
From WSJ.com
For Many, 2013 Will Be the Year to Finally Buy a Home
The number of homes for sale fell to a 13-year low in January, leaving would-be buyers chasing a shrinking supply of homes just before the spring selling season.
"It's not that the prices are crazy, but the buyers outnumber the available homes for sale."
There was an average of 4.8 months of supply of existing homes for sale in the fourth quarter, according to the National Association of Realtors (that is, it would take 4.8 months to sell off the inventory at the current pace). Six months' supply is closer to normal, says Celia Chen, a housing economist with Moody's Analytics, an economic research firm. In 2010, it went as high as 10 months. "Prices are starting to rise as a result of the strong demand relative to low supplies," says Ms. Chen.
Why they even single out Arizona, along with DC, as having the highest jump in the price index.
Ah, not here in the Foothills I’m afraid. At least not if you’re talking about anything priced more than about $500,000 – of which there are 218 for sale, that’s 56% of the homes for sale – or the occasional bargain priced distress sale. But if you can suspend disbelief for 5 minutes it’s an amusing fairytale.
Click Market Snapshot up at the top of the page for a quick peek at the current foothills market. However, in the past, the foothills market has trailed other larger markets – NY, LA, SF, and even Phoenix – by 3 to 6 months on both the up and downside. So maybe we’re on the cusp of a big turnaround and just don’t see it yet. I wouldn’t rule it out.
see thefoothillsToday.com
to find your Tucson Foothills home