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Bidding Wars are the New Norm for Homebuyers

Provident Bank, a leading New Jersey-based financial institution, released a new Home Buyer Research Report showing increased competition in the housing market. In fact, approximately 61% of the survey’s 400 respondents – all recent home buyers – competed in at least one bidding war during their home search.

Despite competition, most said their winning offer on the home they ultimately purchased was at or above asking price with more than 25% saying their winning offer was more than 10% above asking price. Additionally, 70% of respondents reported a positive buying experience.

“Our survey showed that first-time home buyers have not been scared off by the competitive housing market,” said Tony Labozzetta, President & COO, Provident Bank. “The research shows that motivators to move are largely quality of life factors like better neighborhoods, better schools, job relocation or transfer. The good news is that most have been pleased with the overall home buying process despite the competitive market.”

The survey also found that recent buyers are offering lower down payments.

Despite most respondents offering less than 20% for a down payment, they had no difficulty obtaining a mortgage. Mortgage rates are still historically low for many recent home buyers, with 31% saying their rate is between 2-3%.

Additional findings include:

  • Approximately 75% of home buyers did at least half of their home shopping in-person, while 25% did most of their home shopping online.
  • More than half (55%) think they overpaid for their home, however, 44% of respondents do not regret buying now.
  • Over half of respondents think they will stay in their home for five years or fewer.

To access more business news, visit NJB News Now.

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