Low Inventory Plus Low Rates = Bidding Wars

Multiple offer bidding war on steroids spreads across the Southland, previously there was a greater concentration on the West Side of Los Angeles last year. It has now spread throughout the county including the high desert. Seller's Counter Offers have equally have gotten a lot more agressive asking for Buyers to remove all contingencies from the start. Can this trend last? In my opion, I think not, Buyers have thier limits and I anticipate values will plateau, I don't foresee though any decline in values in the near future. Unemployment still remains high and many industries are beginning to breath life again. Also, the new administration has redoubled its effort in getting the economy through the pandemic with its new stimilus package. Inflation had a momentary outcry, but many economists have dispelled that inflation can gain much traction, so interest rates more than likely will remain somewhat flat or have muted increases. That means values will remain high and more than likely continue to rise for the rest of the year. We just don't know how much they will rise, it all depends on consumer confidence based that there is a brighter future and the pandemic will soon be a just memory.