Inventory in most markets is lower than usual, and many buyers are finding themselves in bidding wars over properties. Here are some quotes from Suburban Realtor Associations.

A July 2020 Redfin study found that more than half of offers faced competition in that month, thanks to low mortgage rates and lack of homes on the market. Across Pennsylvania, many Realtors® have reported bidding wars in their markets as well.

Kathy McGuriman, president of the Montgomery County Association of Realtors® said there has been an influx of bidding wars in lower-priced homes in the area. “If the property is under $450,000, certainly we have multiples. But when you get to under $375,000, it’s crazy. [I tell] my buyers, you have to make the best offer immediately, and we add the escalation clause. I ask the listing agent when it’s most convenient for the seller to close. It’s most difficult for first-time buyers, as they may not have large reserves for deposits and they may be financing through FHA with seller assist. They will never get the house when there is a buyer with a large deposit and low loan to value of the home,” she said.

Lehigh Valley is seeing bidding wars for homes, especially for homes under $500,000, according to Jack Gross, president of the local association. “The final price inevitably exceeds the list price by tens of thousands,” said Gross. “Our inventory situation is as critical as I have ever seen, in some municipalities there are only one or two homes for sale at any given time and as soon as they are listed, the appointment slots fill up for days immediately. Now is an awesome time if you are a seller who does not need to immediately replace with another purchase. If you’re a buyer and wish to take advantage of the best mortgage rates we may never see again, be very vigilant and prepared to see a property at a moment’s notice.

In the southeastern part of Pennsylvania, Bucks County Association of Realtors® President Scott Geller said he has seen an increase in bidding wars, particularly for homes in the $250,000 to $450,000 bracket. “In a buyer’s market, with five buyers looking at 10 homes, all five buyers determine the top two and those sellers get multiple offers, and eventually the rest sell. In a seller’s market, with 10 buyers looking at five homes, all 10 buyers determine the top two homes and those get multiple offers with favorable price and terms, and in short time, due to demand, the rest sell, but without the same frenzy or contract concessions,” added Geller. “As I advise my buyer and seller clients, it doesn’t matter whether we’re in a buyer’s market or a seller’s market or a balanced market, the best homes priced best always go first and fast,” he said.