Bidding Wars Erupt For Homes In Silicon Valley, Miami, Seattle And Washington D.C.

Bloomberg reports:
Bidding wars, absent from most parts of the U.S. residential market since its peak in 2006, are erupting from Seattle and Silicon Valley to Miami and Washington, D.C. The inventory of homes hovers close to a six-year low, while an increase in jobs and record affordability are tempting more buyers. The number of contracts to buy previously owned homes jumped 14 percent in February from a year earlier, the National Association of Realtors reported yesterday...

While listings will probably rise as banks accelerate foreclosures and sellers gain confidence in the market, the U.S. metropolitan areas with the strongest economies may be ready to absorb the additional inventory, said Mark Zandi, chief economist for Moody’s Analytics...

Low values and interest rates have made buying a better deal than renting in 98 of the largest 100 metropolitan areas, according to Trulia Inc.

Overall,home prices dropped 3.8 percent in January from a year earlier, according to the the S&P/Case-Shiller index.The housing market never cleared properly during the Great Recession, because of government meddling in the sector. As the overhang clears, the housing sector will, again, heat up in areas beyond Miami and Silicon Valley. You guessed it, all because of Fed money printing.

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