While housing reports continue to reveal mixed emotions regarding a market turnaround, some homes for sale in Los Angeles County and surrounding areas are seeing a return of bidding wars.
Bloomberg reports that homes in wealthy areas including Brentwood, Beverly Hills and Bel Air have seen a spike in bidding wars for luxury properties as more potential buyers return to the market. The source notes that even homes in need of repairs and renovations are attracting buyers who are looking to eventually resell them.
Information from DataQuick confirms the belief that the market is improving, as sales of homes in Beverly Hills priced at $2 million and higher increased 11 percent in the first quarter of 2012 from the same quarter last year. In Brentwood, they jumped 56 percent, while sales in Malibu gained 64 percent.
The bids have helped lower the inventory of homes listed for sale, which in turn allows home prices to recover while benefiting homeowners with properties listed for sale with shorter listing times. The increase in interest to become a homeowner comes as reports say housing affordability has reached its highest recorded level with low mortgage rates and improving home prices.