Real Estate Agent · Downey, CA · Member since 2017 · 3 posts · 4 votes
I've been noticing buyers are willing to pay close to retail value for distressed properties just to lock in the historic low interest rate. Just today, a property that would have been sold to investor at $160k - $180k is pending at $259k (I'm in CA). The ARV in the area is $300k fixed up and brand new.
I was wondering if anyone else noticed this in their market? And have you found it harder locking in good off market deals during this sellers market?
Investor · New Orleans, LA · Member since 2012 · 968 posts · 747 votes
6y
That seems to be the case all over the country. The availability of cheap money has driven prices up for both listed properties and off market properties. It has definitely been much harder to find good deals.
Real Estate Agent · Charlotte, NC · Member since 2019 · 45 posts · 19 votes
6y
Charlotte, NC market is experiencing same thing. Investors and First-Time buyers are vying for the same properties. With crazy low interest rates + ridiculously low inventory in the area (1.3 months of supply), sellers are basically getting full to above ask price across the board. Lots of multiple offer situations.
Real Estate Agent · Carlsbad, CA · Member since 2019 · 6 posts · 3 votes
6y
@Tracy Cummins
We have the same situation in San Diego, CA. One property my clients and I toured received 36 offers! There is definitely low inventory & buyer demand from low interest rates.