Bidding Wars: Coming to a Neighborhood Near You

As you may recall, we discussed the extreme interest in homes which are located in affluent neighborhoods like Studio City, Sherman Oaks, Tarzana, and Encino in our last blog post. This position is being echoed in numerous other media outlets, noting an uptick in the market in recent weeks. It appears that the Spring selling season has a few aces up its sleeves, in the form of bidding wars. 
It’s not difficult to imagine how we got here. COVID-19 landed on our shores, and both the supply and demand side of the housing market were plunged into chaos. Specifically, the number of active listings dropped by 25% compared to a year ago. As we mentioned in our last article, only the most financially secure individuals are looking for homes right now. What this means, practically speaking, is there are affluent people fighting over a limited supply of houses – this creates the perfect storm for a bidding war. 
Things will stabilize, they always do, but it’s a seller’s market right now; buyers with sizeable bank accounts will have to duke it out with each other in order to get their hands on a limited supply of homes; that should put cartoon-esque dollar signs in the eyes of people who are considering selling. 
At the Chernov Team we understand knowledge is power, and knowledge of a situation ripe for bidding wars is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.