Lack of InventoryMarket Updates
Lack of inventory sparks big bidding wars on homes. A couple of weeks ago we listed a house for $998,000 which was in keeping with sales in the area. The house was very nicely renovated with an addition. There was significant attention paid to detail and renos were very tasteful. In general the house showed 10 plus. 23 buyers wanted to buy it. In the end the home ended selling for over $420,000 over list and there was a fight for it with the top bidders. We believe that a few factors came into play:
1. Pent-up demand by first time home buyers many of whom have lost in bidding
2. Renos are now very costly and time consuming. Pandemic has doubled cost of renovating and lack of supplies have made it a very frustrating process.
3. it’ s not that easy to find a nice house.
We believe that the market will continue to reflect these factors.