There is a curious occurrence happening in the local real estate market – unusually high numbers of multiple offers on available properties. The question begs “why?” I asked my astute assistant that very question and he said the answer is that “due to continuing instability in global markets, investors are beginning to look for safe havens – real estate being a traditionally stable investment, it is a natural port for such investors.” The problem is in inventory. Unusually high amounts of offers and few houses to show!
This may make deals more difficult in the shorter term — sellers think it’s a seller’s market due to low inventory and buyers believe it’s a buyer’s market because prices could be at a very low point — but this could rebound. As the housing market recovers over time, inventory will increase to match the amount of buyers, potentially creating healthy growth in the housing market.
This all means: it’s a good time to try to invest now — regardless of the number of buyers out there — before prices go back up! Despite current market conditions it’s still very possible to find a dream home now at a steal. Even if you can’t find that perfect property, it’s even more likely to make nice investment by turning around property on the market rebound.