If you've been following real estate news, there are many headlines claiming the price bidding wars are back and buyers are shocked to find themselves competing with other bidders to acquire distressed real estate at reasonable prices. Well, consider this blog post a dose of reality.
Bidding wars, as it turns out, is only the case in very special circumstances. In a new report, researchers say despite the so-called bidding wars dominating media coverage, average home prices remained flat in April.
While some home listings were attractive enough in key markets like Arizona and California to attract competing buyers, distressed prices still fell nationwide for the most part.
The HousingPulse survey released by Campbell/Inside Mortgage Finance claims the average price for non-distressed properties declined 1.5% from March to April and the price for short-sales fell 1.7%. The price on damaged REOs declined 1.4% while move-in ready REOs saw their average price dip 0.3%, the Campbell Surveys report said.
In other words, no matter how many bidding wars surface in unique markets, overall real estate prices are on the decline nationwide as forecosures sit on the market.