Boston Area Homebuyers Facing All Cash Offers, Crowded Open Houses
WATERTOWN (CBS) – It's a frustrating time for homebuyers in the Greater Boston area eager to buy, but hitting roadblocks in this competitive housing market.
"Lots of long lines. Lots of waiting for open houses and stuff," said Chris Pantapas.
He's looking for a two-family home in Peabody. Problem is, he's not alone.
"It's just been kind of upsetting," Pantapas explained. "You find the perfect situation and it just gets out of your hands you know?"
Watertown realtor Rube Vogel said inventory across Massachusetts is slim. Homes that do hit the market are snatched up quickly.
"Properties are getting multiple offers as soon as they hit the market. Open houses are flooded," Vogel told WBZ-TV outside one of his listings in Watertown.
Many of those buyers are offering all cash and thousands over asking price.
"Just last week we had a buyer bid over $100,000 over ask. The property, initially they didn't get, but it came back around," said home buying expert Teagan Gaeta. "There are a lot of people moving to the Boston area. There's a lot of tech and life science which is drawing in a lot of talent."
It's making it tough for buyers like Pantapas to compete.
"You definitely lose hope. You figure if you should wait for the market to change if it's going to, but it's just been going up so there's no way to predict it," he said.
Realtors, like Vogel and Gaeta, said there are ways to get ahead of the game. Before you shop: get pre-approved for a home loan, balance what you want in a home vs. what you need. If you see a home you like, Vogel suggests not waiting – make an offer.
"If you know you're in an offer situation where you're 20 plus offers, you have to put your best foot forward at any given time," he said.
While it's a tough market for homebuyers, Gaeta is urging people not to lose hope.
"I think towards the end of the year, the rates may get a little bit higher, and we might see a bit of stabilization, but overall I don't see prices dropping," said Gaeta.