AM I GOING TO GET INTO A BIDDING WAR?

My buyer just asked me this as we are preparing to make an offer on a home in Chicago, “what happened to our buyers market?” We have so many buyers that at times, especially on weekends when buyers want to look, there isn’t enough time in the day to serve them all. In fact, we are seeing more buyers in the marketplace than we have seen in seven years. I’m pricing my new listings aggressively in favor of sellers, and still homes and condos are selling with multiple offers at prices averaging 98% of list price. Just finished researching trends and here’s why:

Lawrence Yun, Chief Economist of the National Association of Realtors provides insight with my commentary added. “Favorable affordability conditions (such as mortgage rates at record lows) and job growth have unleashed a pent-up demand.” And rents are up so renters are becoming buyers. “Most areas are drawing down housing inventory which has shifted the supply/demand balance to sellers in much of the country… It’s also why we’re experiencing the strongest price growth in more than seven years.”