Bidding Wars on Foreclosed Homes

Bidding Wars are breaking out as a result of falling homes prices.

In most of the nation, the supply of unsold homes outpaces the demand, and as a result real estate values are falling.  A major trend contributing to this oversupply is the increasing volume of foreclosures on the market.

However, even with oversupply, reduced prices on many foreclosed homes are driving multiple bid situations. Many real estate brokers are reporting that they are receiving multiple offers on their listings.

Tamby Leonard of Santa Ana, California, says that she has been outbid four times since January when trying to buy a home for her family of five.  The more appealing bank-owned homes in her price range tend to be sold quickly to investors that are able to pay cash.

The Federal Finance Agency recently reported that home prices nationwide have risen 0.7% in February from January.  It is predicted that these bidding wars will continue until prices become more stable.