There's No Place Like Your Place Blog

head_left_image

Multiple Offers? What Is Going On With Bidding Wars?

Multiple Offers? What’s Going On With All Of These Bidding Wars?

What’s Going On with Bidding Wars? | MyKCM

This is the best position for a seller to be in and a situation where buyers have very little negotiating power if any at all!

In our Northern Illinois Market, especially Lake County, McHenry County and Kane County,  I am definitely seeing MANY more multiple offers in the lower price ranges.   It is especially a seller's market in the under 200,000. range.....those nice little homes that are great for first time buyers, people downsizing and in the price range that is also very attractive for investors to buy and rent out.

 

In a strong seller’s market, like the one we have experienced over the past few years, bidding wars are common and expected. This makes sense! A seller’s market is defined as a market in which the inventory of homes for sale cannot satisfy the number of buyers who want to purchase a home.

According to the Cambridge English Dictionary, bidding wars occur when two or more parties repeatedly outbid each other as they compete to purchase something- in this case, a home.

In some areas of the country, first-time buyers have been met with fierce competition throughout their experience. Some have been out-bid multiple times before finally winning a bid on a home to call their own.

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), there is currently a 3.7-month supply of homes for sale.

With the current number of houses listed for sale and the level of demand from buyers, this means it would take 3.7 months for all the homes listed to sell if no additional listings came to market. Any supply number under a 6-month supply is considered a seller’s market. According to NAR, the housing market hasn’t had a 6-month supply of homes for sale since August 2012.

Good News for Buyers

A recent report shows that the percentage of houses sold including a bidding war before settling on a final price decreased from 53% in January of 2018 to 13% this year.

One reason for the decline is an influx of homes being listed for sale. Even though the month’s supply number is not increasing, the number of homes for sale is. The chart below shows the year-over-year change in inventory over the last 12 months.

What’s Going On with Bidding Wars? | MyKCM

 

As you can see, the number of homes for sale has started to build over the last eight months. Prior to this reversal, inventory levels had fallen for 36 consecutive months when compared to the year before.

Danielle Hale, realtor.com’s Chief Economist, gave some insight into why bidding wars are less common on a local level this year,

"[Last year] you might have been the only listing in your neighborhood, and you could put your home up at a certain list price and you would likely see multiple offers at or above that list price. That tide is turning this year.

It's going to depend on what neighborhood you're in, but we expect it to be more common this year that you won't be the only listing."

Inventory in the luxury and premium markets (the top 25% of listings in an area by price), is increasing at a greater rate than the starter home market. As the choices buyers have continued to increase, the likelihood of a bidding war will decrease.

Bottom Line

If you are debating listing your house for sale this year, you may not want to wait for additional competition as inventory continues to rise.

 

To Search Homes For Sale, Please Contact Me Directly Or Feel Free To Search On My Website!

 

Search Waterfront and Fox River Front Homes For Sale Here

 

 
 

It is an EXCELLENT TIME TO BUY AND SELL NOW, especially for second home buyers, investors, move up buyers and even first time buyers!

 

 

I hope you find this information useful.  I am only a phone call or email away of you need real estate help:-)

Debra Kukulski Real Estate Consultant

If I can be of assistance to you, please do not hesitate to call or email me.  It will be my pleasure!  

By the way, if you know of someone that could benefit from my high level of service, please call or email

me with their name and daytime phone number and I will make sure to follow up and

take great care of them. 

The majority of my business is referral and repeat clients.  I am so grateful it keeps growing from your loyalty and referrals:-)

I appreciate YOU and your referrals!

 

 

I can be reached at my direct number at the office: 847.516.6760.  I look forward to hearing from you!

 

Information deemed accurate and reliable but not guaranteed. Source MRED MLS.Disclaimer: Information herein may come from various sources, some of which may not be reliable and may change without any notice. Debra Kukulski does not guarantee or is any way responsible for the accuracy of the information in this blog and information provided is without warranties of any kind, either express or implied. Information on this blog represents the opinions and ideas of the author; comments by others may not express the views of the author.  All photos and content may not be duplicated without express written consent of author.
Copyright © 2016 By Debra Kukulski, all rights reserved.

 

Comment balloon 1 commentDebra Kukulski, Broker Associate • March 21 2019 05:58PM
Multiple Offers? What Is Going On With Bidding Wars?
share
Multiple Offers? What’s Going On With All Of These Bidding Wars? This is the best position for a seller to be in and a situation where buyers have very little negotiating power if any at all! In our Northern Illinois Market, especially Lake County,… more
Thinking of Selling Your House? This is a Perfect Time!
share
Thinking of Selling Your House? This is a Perfect Time! It is common knowledge that a great number of homes sell during the spring buying season. For that reason, many homeowners hold off putting their homes on the market until then. The… more
Thinking of Selling Your Home? Why You Need A Pro! #Sellers #FSBOs
share
Thinking of Selling Your Home? Here’s Why You Need A Pro in Your Corner For Sellers FSBOs Move-Up Buyers With home prices on the rise and buyer demand still strong, some sellers may be tempted to try and sell their homes on their own… more
17 Top Haunted Houses in Chicago -YIKES!!!! #Halloween #HauntedHouses
share
Well, here it is… The Chicago Trib's 17 Top Haunted Houses in Chicago… YIKES!!!! I think just looking at the article was scary enough for me!! Have a fun and SAFE Halloween! http://www. chicagotribune. com/entertainment/theater/ct-chi-best… more
Does Your Home Have Any Of These "UGLY HOUSE" features?
share
Does Your Home Have Any Of These "UGLY HOUSE" features? If so, you may be wiser to remedy them before letting buyers see your home! I always do my best to help my sellers prepare and stage their home for the market. Some features, if… more
4th Of July Fireworks and Events In Lake County IL
share
Wishing everyone a SAFE and fun Independence Day Holiday!! 4th Of July Events In Lake County IL more
No Matter What the Groundhog Says, 5 Reasons to Sell Before Spring!
share
No Matter What the Groundhog Says, Here are 5 Reasons to Sell Before Spring! Thursday February 2nd, 2017 For Sellers Housing Market Updates Is spring closer than we think? Depending on which groundhog you listen to today, you… more
RE/MAX December National Housing Report in 40 Seconds!
share
RE/MAX December National Housing Report in 40 Seconds! more
Trick Or Treat Hours Chicago Suburbs
share
Have a SAFE and Fun Halloween! Click Here For: Chicago Suburbs 2016 Trick or Treat Hours! more
Thinking You Should #FSBO? Think Again [INFOGRAPHIC]
share
more
RE/MAX National Housing July 2016 Report In 40 Seconds!
share
Quick Real Estate Market Facts! RE/MAX National Housing July 2016 Report In 40 Seconds! more
National Housing Report in 40 Seconds! #realestate #RE/MAX
share
This is the most recent national housing report from RE/MAX… all in only 40 seconds! more
National Housing Report in 40 Seconds! #realestate #debrakukulski
share
This is the most recent national housing report from RE/MAX… all in only 40 seconds! more
A Cheat Sheet For Home Sellers
share
Great article for Home Sellers, thanks to GARY L. WATERS, BROKER OWNER, WATERS REALTY OF BREVARD, LLC To Search Homes For Sale, Please Contact Me Directly Or Feel Free To Search On My Website! Search Waterfront and Fox River Front Homes For… more
Free Trees For Arbor Day!
share
The Illinois Tollway is giving away 15, 000 free tree seedlings this coming Friday 4/29/16! To find out locations and hours to obtain yours, visit: Plant a Tree on Arbor Day - Friday, April 29 Per the llinoisTollway. com website today: "The… more
REMAX. com Most Popular Website! Tips For Choosing Your Realtor!
share
It's important to have your home listed not only with a great experienced and professional full time Realtor, but also with an excellent company that will get your home as much visibility on the web as possible. If the home buyers can not… more
Free Worksheet: Define Your Dream Home #realestate
share
Just starting your home search? This free worksheet could really help you prioritize your wants and needs in yor new home: Define Your Dream Home #realestate #homebuyer #firsttimebuyer http://tinyurl. com/hzz353d more
2016 Real Estate Market Forecast
share
NATIONAL ASSOCIATION OF REALTORS CHIEF ECONOMIST, LAWRENCE YUN, GIVES HIS ECONOMIC AND NATIONAL REAL ESTATE FORECAST FOR 2016: https://www. youtube. com/watch? v=I-wXsy6gkEg Some Key Points: A Modest Increase In National Home Sales Is Expected … more
Add Value To Your Home!
share
Great advice on preparing your home to sell written by Blanche Evans for Realty Times. What has the greatest impact? It's probably not what you think;-) #realestate #homestaging http://tinyurl. com/plwo38w more
FREE Snowmobile Safety Course Offered- Have Fun But Be Safe! #McHenry
share
FREE Snowmobile Safety Course Offered by McHenry County Sheriff's Office- Have Fun But Be Safe! This is the email I recieved with the details: "Community: Sheriff’s Office to Host free IDNR Snowmobile Safety Course - Registration Information… more