One of the top stories in recent real estate headlines was the intensity and frequency of bidding wars. With so many buyers looking to purchase a care home and so few of them available for sale, fiercely competitive bidding wars became the norm during the pandemic – and it drove care home prices up. If you tried to buy a care home over the past two years, you probably experienced this firsthand and may have been outbid on several homes along the way.
But here’s the news you’ve been waiting for: data shows clear signs bidding wars are easing this year.
According to the National Association of Realtors (NAR), the average number of offers on recently sold homes has declined considerably over the past few months (see graph below):
The graph shows homes were seeing a high of around five offers earlier this year. For care homes, the average was around 2.5 offers. But the latest data shows that average was down to just shy of three offers per recently sold home, with 1.5 offers per care home. This shift is happening largely because rising mortgage rates moderated buyer demand and slowed home sales, resulting in a growing supply of homes on the market. Essentially, more choices for buyers.
What This Means for You
If you put your care home search on pause because you were outbid last year or because you didn’t want to deal with the peak intensity of bidding wars, you can breathe a welcome sigh of relief. While it’s still a seller’s market, an uptick in inventory gives you a window of opportunity to jump back in. You may still be competing with some buyers, but it likely won’t be anything like it was just a few short months ago.
If you put your plans on pause because of intense bidding wars in recent years, it may be time to kick off your care home search. Today, bidding wars are easing and that may mean less competition for you as a buyer. If you’re serious about buying a care home, let’s connect to get started today. Call Michelle J. London at 949-397-4506 for your free consultation. We will formulate a game plan for your care home search and a winning strategy for success.