Bidding Wars Are Back

We may never have predicted it just a few months ago, but right now, the New York City real estate market is sizzling! Buyers have returned in abundance to take advantage of historically low-interest rates, and sellers seem much more amenable to reasonable pricing (after three years of being hit over the head with news reports reiterating that it's a buyer's market.) All of this has led to huge numbers at open houses and bidding wars, bidding wars, bidding wars.

The Hoffman Team was involved in eight bidding wars on the buyer side and six bidding wars on the selling side in February alone. That's a total of 14 bidding wars! Numbers I didn't think I was going to report for at least another five to 10 years!

The activity is confirmed on the mortgage side as well. We invited our favorite Wells Fargo rep to our sales meeting two weeks ago, and he reported that his firm filed more purchase applications for the 30 days spanning mid-January to mid-February than in any 30-day period in the last three-and-a-half years!

So, what's causing this sudden rush of activity?

I think it's mostly due to sellers who are serious about pricing their properties accordingly. And when they do, savvy buyers respond briskly. We recently accepted four bids, on four different properties, all of which were $100,000 over their respective asking prices, and that was by design. Sellers who are ready to sell are reaping the benefits of hungry buyers — buyers who will beat each other up for a chance to get a "well-priced" property.

And, frankly, they should beat each other up for great prices. Money hasn't been this cheap for a very, very long time with some rates dipping below 3 percent for interest-only loans. It's just incredible.

I can't stress how important it is to take advantage of this market if you are a buyer. Many reported that the bottom of the market was at the tail end of last summer, so there's no time to waste. And, if you're a seller, be aggressive with your pricing. If you take the time to prep your property for sale, buyers will respond in a very positive manner.

And always, please call us if you have any questions about today's market, whether you're looking to buy or sell New York City.

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