Eager to buy your first home this spring? Already own, but want to trade up? Be warned: there’ll be plenty of competition. Bidding wars have broken out in hot real-estate markets like Denver and Los Angeles, where there aren’t enough houses to meet demand. Seven states set highs in March, including Colorado, New York, Tennessee and Texas, according to real estate data provider CoreLogic.
The lack of supply is a key reason home sales nationwide have yet to return to healthy levels following the housing collapse in 2008.
“Inventory is still fairly low in a lot of markets across the country,” said Skylar Olsen, senior economist at real estate data firm Zillow. “Buyers are not going to have the easiest time out there.”