Experts are comparing this spring homebuying season to a race between Millennial first-time homebuyers, Gen Xers hoping to trade up, and "boomerang" buyers with repaired credit, all vying on a market with tight supply.
In her own homebuying efforts, Las Vegas escrow officer Maria Maneva felt the pinch of competition. When the seller began to favor an all-cash rival offer, Maneva increased her bid by $600, but still did not get the home. Maneva says, "I will make an offer without even looking at. I'm even more scared." Las Vegas' home sales surged 34 percent in 2017, but dropped 5 percent in February 2018, a possible sign that supply is cramping buying activity, CNBC reports.
Some of the hottest markets in recent years, such as Seattle, Las Vegas and San Jose, have continued to post double-digit annual price increases. Now, they've been joined by cities such as Nashville, Salt Lake City and Kansas City. In February, there was a 3.4-month supply of existing homes nationally, the lowest on record for that month and substantially below a balanced six-month inventory, National Association of Realtors says. The number of starter homes is down 14.2 percent in the first quarter from a year ago, according to Trulia.
