What a difference a year makes. Last year at this time, buyers were being very cautious about stepping into buying for the first time and many preferred renting over buying. That pattern has reversed itself as rents have climbed considerably and now buying is looking much more attractive. Parents buying studios and one bedrooms for their children is the hottest market segment right now, up almost 8 percent compared to last year. Multiple bids are once again almost commonplace on well-priced properties. The uptick is due to the Fed keeping rates low with no sign of rising, and a surge in rents with no incentives. The absorption rate, or the amount of time it would take to sell all of the listed properties at the current pace of sales, was 5-9 months, the fastest since 2007. So, with dwindling supply of new listings coming on the market, buyers who find a property that they like should move quickly rather than slowly, as it is likely it won’t be available for very long.
SOURCE (The Real Deal)