Nearly six in 10 California home sales received multiple offers in 2012, the highest level in the past 12 years, according to the state’s top Realtor trade group.
Each home received an average of 4.2 offers, up from 3.5 in 2011. Lower priced homes (typically real estate-owned or short sales) attracted more multiple offers than traditional sales.
Seven of 10 REO sales/short sales received multiple offers, while only half of regular home sales received more than one offer.
California Association of Realtors president LeFrancis Arnold said in a statement that, “The fierce market conditions have forced many buyers to compete with all-cash offers and investors, setting off multiple offers and bidding wars, making it even more difficult for first-time buyers to become homeowners.”
The competitive housing environment led to more properties being sold at or above the list price, with 41% of homes selling without a markdown from the asking price, the highest reading since 2005. (The historical average is 32%, the group said.)
But in what may be bad news for mortgage lenders, 30% of all homebuyers paid for their property with cash in 2012, the grade group reported.