As the month of May comes to an end, many homes on the market should be completing the closing process, but bidders continue to bid higher than asking price, kicking off a slew of bidding wars. The 11Alive Help Desk spoke with Rhonda Duffy, of Duffy Realty of Atlanta, to determine why homebuyers are suddenly competing in this seller's market.
Duffy reported that bidding wars are a cause of the low interest rates currently available in the housing market, in addition to low inventory. Interest rates vary from buyer to buyer, according to the type of loan a buyer secures.
To put the current market in perspective, the housing inventory for summer 2007 boasted around 110,000 available units. This summer, there are roughly 36,000 homes on the market in the metro Atlanta area, causing wars with homebuyers and agents alike. Agents are willing to purchase and flip the homes for potential buyers.
11Alive's Jennifer Leslie reported that the areas of Kirkwood, Oakhurst, and Brookhavenalong with many other developing cities around the metro area, have seen an upswing in homebuyers ready to take charge of the seller's market.
According to atlhomesearch.com, home prices in the Kirkwood neighborhood can average around $240,000. Prices in Oakhurst average $325,000 and home prices in Brookhaven average around a whopping $550,000.
With the lack of inventory in the market, homebuyers are willing to spring for double the initial asking cost of the home in order to secure a low interest rate.