This article on bidding wars for home returns appeared in the Wall Street Journal.Right here in my home town of Denver:
Christina and Kevin Dirks have been searching for a house in the Denver area for four months at prices up to $275,000. They made offers on six homes—and were outbid on each one.
“When we first started looking, you had to pay $10,000 over” list price to win the bidding, Ms. Dirks said. “Then, as the weeks went by, it went up to $20,000. And now it’s up to $30,000 and $40,000.”
Ms. Dirks, a 28-year-old office coordinator, said she and her husband, a 30-year-old merchandiser, hope that as the market slows down this winter, “people will put a halt on being so crazy.”
Bidding wars, a hallmark of last decade’s housing boom, are making a comeback in a number of metro areas across the U.S. But while the earlier wars reflected enthusiasm fueled by easy-money mortgages, the current froth stems from a market short of homes for sale.
I’m fortunately not trying to buy a home right now but this is kind of scary for all those who are trying to buy that home! History tells us that after bidding wars end bad things usually happen….What would you do if you were in this situation; buy or pay outrageous rent until the inevitable happens?