FLASHBACK: Bidding wars plunge in Boston, #BiddingWarBacklash next?
Despite 24 years of experience, the first eight months of 2019 have been the worst ever for the Real Estate Cafe, the first online / offline, cybercafe for real estate when we opened in 1995. Now, two headlines this week make us glad that we’ve encouraged buyers client to practice #DefensiveHomebuying even it has reduced our cash flow significantly.
1. Comments by Nobel-prize winning, Yale housing economist Robert Shiller are being reported in different ways by sources inside and outside the real estate industry, but the gist is that housing prices are not just softening, he would not be surprised if they begin falling. As former clients report, it’s already a buyers market in some Boston suburbs:
#InventoryChat: Former buyer client who bought in #Sudbury 2006 says already a #BuyersMarket there. If you’re also empty-nester trying to #TimeHousingMarket, what’s your take on comments by Nobel Prize-winning housing economist?https://t.co/enPbVN99xb#FSBOFriday #Intend2Sell pic.twitter.com/HT31hPHiF8
— Bill Wendel (@RealEstateCafe) September 6, 2019
2. Despite the lowest interest rates in three years, bidding wars in Boston have plunged 75% in Boston based on offers submitted by Redfin’s buyer agents who reported multiple bids in only 15% of their offers by during August 2019 versus the previous year.
As real estate consumer advocates / buyer agents, we’re cheering as it appears local housing markets have hit a tipping point and we invite homebuyers to use the hashtag #RETippingPoint on Twitter and other social media to share local examples of price reductions, negotiated savings, etc.
During the housing downturn in 2005, citizen journalists we seeing signs of a changing housing market before professional journalists. Some of us have done deep research on BLIND bidding wars and called on regulators to implement emergency transparency measures to protect buyers from overpaying.
CALL TO ACTION:
Scan of study this overview of bidding wars, then text 617-661-4046 and let’s meet offline if you’d like to talk about how to protect yourself as a potential homebuyer or take action if you feel you were manipulated into overpaying last year (or given bad advice by a “fake buyer agents.)
Share the embedded document above on social media using this link. Should we crowdfund an update or want a Bidding War Scorecard before you submit an offer this Fall or next year?