Have you noticed a trend? If you are a buyer in the under $500K market, and particularly under $300K, you will have noticed there are many other people just like you! A lot of people in fact. The era of multiple offers and price bidding is back, not because people have cash burning a hole in their pocket from the re-fi they just did, but because the prices and interest rates are so low! The real estate mega-planets are aligned.
This market is bringing the investors and first time home buyer’s out of the woodwork. Somehow they have managed to hold on to their cash during the recession, and have waited patiently to buy at the right time. They know with interest rates this low, they can afford to pay their mortgage for years to come, or a tenant’s rent will be covering their cost and pay off their asset. Whether the price of the property falls a bit more or not, they know it would make little difference to their monthly payment, and, with the competition, it could well be this segment of the market won’t fall anymore.
In a Webinar I attended yesterday it was apparent from the instructors located in Colorado and Florida, that bidding wars are happening across the country. When the surge is that big, it’s not a local phenomenon anymore. It’s not just on Maui. No matter what happens with the lifting of the Hawaii Bank-Owned moratorium in July, this train will keep moving because the whole country is getting momentum.
For those still fence sitting, my question is, are you a Buyer or a Fence Sitter? You may have to wait another 15 years to see a price and interest rate alignment like this again, and a lot of people already know it!