For about 60 days now, I have been incredibly frustrated. Every day I show properties or put in offers on properties only to find out that they were sold yesterday. I had a property this week that had been on the market only a couple hours. My customer saw it and we put in an offer immediately. Although only 5 hours old, when we submitted our offer, they already had 6 offers in front of ours!
Absorption rate is at 4.5 months …total swing from 11.5 months a year ago…inventory is stable but will slowly increase with the foreclosure moratoriums being lifted… Hang tight – but let your buyers know that with absorption rates under 6 months, you can’t be picky and must act quick
Now it just seems to be a running joke amongst my group. We need to book 5 times as many showings to just get enough to see. If you want a house, bring your pen cause we are writing offers on the spot if you like it.
I happened to be exchanging an email with a senior REO agent today about a property (that again was sold), in my frustration, I asked him: ”What is up with the multiple offers and properties gone in less than 1 week? Is this going to get easier (for me) anytime in the near future?” Here is his response:
Absorption rate is at 4.5 months …total swing from 11.5 months a year ago…inventory is stable but will slowly increase with the foreclosure moratoriums being lifted… Hang tight – but let your buyers know that with absorption rates under 6 months, you can’t be picky and must act quick 
Although I understand his answer, it doesn’t make me feel instantly better. I guess it further confirms the “Foreclosure Wave 2” theory.
8 comments
#1AnthonyMay 23, 2009, 6:08 pm
Scott, this is a universal problem in many markets, including mine. For every 20 offers i write i may get one acceptance. I believe it has more to do with listing agents getting their own deals and throwing out a few deal to look transparent. Make sure you take note of the listing agents who tell you this, because the niche will end one day and the shoe will be on the other foot. This is business of what goes around comes around just take note.
#2Tenant ScreeningMay 25, 2009, 9:06 am
We noticed the same thing here, but the properties are coming back into the market quickly.
There’s a synthetic force at work manipulating the market and causing rapid swings. They assumed the moratorium was good for homeowners; after all, who would argue that they needed a bit of a break. But when it settles out it’s likely going to result in another rapid incline in inventory, and a rapid decline in values again.
The bottom is falling out here. Every week I ask “can it get any lower?” and the following week proves it can over and over again.
#3MN MLSMay 26, 2009, 10:19 pm
I feel your pain. I can’t remember the last time I wasn’t in a multiple offer situation. Wrote two today, my guess is I will get the old MOD tomorrow.
#4Brainerd MinnesotaMay 27, 2009, 11:05 pm
As do I. I am in the market for myself. I have put in two offers on fairly new listings and was too late. They are going fast here.
#5minneapolis loftsMay 28, 2009, 12:41 pm
Just all around frustrating!!
#6Minnesota First Time Home BuyersJune 4, 2009, 10:29 pm
Surprisingly, I’ve been up against a lot of Multiple Offer situations lately, and my buyers have actually gotten the property more often than not.
I think it has to deal with my “education” with them, and letting them know if they want the house, they need to pay accordingly. Listing Price means nothing right now–high or low. I just look at the Comps and offer accordingly.
Although, I have still been running into the “property is sold–no more showings” bit too…
#7JenniferSeptember 9, 2009, 6:54 pm
I really liked this one you wrote. We wrote 6 offers within 60 days for the same buyer. Very frustrated!
#8Staten Island Real Estate AgentNovember 5, 2009, 2:50 pm
I agree with your first poster Anthony. Take note as too which agents are doing this. If they continue too do this you need to report them
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