The Market Is Changing- Part 1- Bidding Wars Have Begun
May 29, 2009, Writen by: Chris Anderson, Ph.D
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You have to be joking, right? Are you telling me that bidding wars are starting to occur for homes for sale? In case you fell asleep for about 5 years, this isn’t 2004.
In all seriousness, this market is changing and local pro’s can feel it and are acting according in many locations across America. The interesting thing is that the “regular” house buyer market is still weak but the professionals are grabbing properties like the San Francisco gold rush.
There are several things that are driving this and point to a recovery in the regular housing market:
- Bidding wars now for severely discounted properties;
- Record rental returns;
- Unbelievable amounts of CASH BUYERS moving in; and
- A 3 month trend started in regular home sales.
In this blog series, we are going to look at each of these 4 parts and provide real evidence that as a real estate investor, if you are not paying attention to this shift, you can be missing a once in a lifetime? opportunity.
Bidding Wars
Bidding wars are literally occurring for severely discounted bank REOs and short sales. Consider this quote from a recent Pheonix Market Trends:
“We have a short sale coming on the market soon at a normal market price. Currently it’s being prepped and he tenant is moving out, though we have put a few ads out there to see the reaction and create an auction effect which will possibly give us several strong offers to present tot he lender and get this property sold. The response is quite amazing. We have a long list of people just waiting for it to come on the market.”
In addition in Tampa Florida, where we are starting to do a lot of business, real estate wholesalers are now complaining that their offers were typically the only offer on a bank owned house….. Now, there are an average of 5 offers per home, if priced appropriately.
All the while the latest headlines in the popular media are still gloom and doom. For example, the latest Tampa Bay Business Journal on the topic announced:
Home prices take a tumble in Tampa Bay region
As we will discuss in this series of blog posts, this is a very unique time where professionals are going EXTREMELY BULLISH while the main stream market is still asleep…… We like times like this 
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One Response to “The Market Is Changing- Part 1- Bidding Wars Have Begun”
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Who Is "REALLY" Making $ In Today's Real Estate Market?
Our 29,689 Members Tend To Agree...
It's Usually Not The GURUs
Have you ever noticed that every "Guru" real estate pitch sounds the same........
They once were poor, but now are rich working only 5 hours per week, and you can be rich too if you just buy their "can't fail system".
Or have you noticed that every property promote has a can't miss proposition, if you just buy TONIGHT.
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I think we have hit bottom on the plunge and home sales are finally starting to pick up. Unfortunately, we have about 40 months worth of inventory that we need to work through as quickly as possible.