Bidding wars erupt in California housing market

For Sale

Illustration by Janice Nadeau

As the spring home-buying season gets under way, bidding wars are breaking out on Sacramento’s tree-lined streets.

People trying to land a house while prices and interest rates remain relatively low suddenly find few choices – and considerable competition.

There were fewer than 1,100 active home listings in Sacramento County and West Sacramento in February, according to the Sacramento Association of Realtors.

That is less than a month of inventory, meaning it would take that long to sell all the houses. A healthy real estate market has about a six-month supply of homes for sale. Three months or less is considered a seller’s market. A month’s supply is almost unheard of.

“It’s the ultimate seller’s market,” said Chris Little, president of the local Realtors’ association.

The lack of homes on the market is leading to multiple offers, fast sales and offers above the asking price in some of the region’s more desirable neighborhoods.

Real estate tracker Zillow estimated this week that area prices rose by more than 15 percent in February compared with the same month a year ago.

It’s frustrating for buyers, great for sellers, but unlikely to last, experts said. Eventually supply will catch up and slow the surge in prices.  Click the link below to read the full story

SACRAMENTO, Calif.: Bidding wars erupt in California housing market – Business Breaking News – MiamiHerald.com.

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