Lower priced homes are triggering bidding wars, and many first-time buyers are being beat out by investors in the current market. The problem is centered in newer, lower-priced communities that first-time buyers, who are often young families, can afford. Many of these homes are foreclosures and offer the first-time buyers a much lower price than these same homes sold for just a few years ago.
In San Diego County, many areas of Oceanside, Vista, and San Marcos are affected by these bidding wars. Often, buyers put in offers on as many as 10-15 houses, and they still don’t have their offer accepted.
These low-priced properties often attract investors who buy many of them at one time. These same investors bought real estate during the boom period and now they are stocking up on real estate properties and often buying them with cash which beats out the first-time buyers.
Often, these houses are sold for well above the list price, because so many offers drive up the price. First-time buyers must come with a pre-approved, very solid loan and be ready to close escrow in as short a time as possible. These situations will continue as long as the high number of foreclosed homes continues to move through the market.