The real estate market never ceases to amaze us but right now homeowners and estate managers are encountering a strange series of events. Due to reduced inventory throughout the bay area, buyers are bidding substantially higher than the overall asking price. Furthermore, many realtors are intentionally underselling which has resulted in the same outcome: buyers overbidding! Sources have confirmed that sale prices were a medium of almost 10 percent higher than initial asking rates. Single-family homes accounted for 12 percent, condominiums average 7 percent above while smaller buildings land at about 2 percent over asking rates. In San Francisco, there have been practically no new homes built making them the most competitive market sector. This pattern has had a ripple effect throughout the entire bay area and sellers are in a frenzy over the situation. The more affordable the home, the higher the demand. Specifically, properties listed under $1 million are of huge interest for buyers. Ultimately, the seller is the one that gains because buyers will overbid about 75 percent of the time. For instance, a two bedroom one bath condominium was priced for a little over $800,000 at the end of January. By February, the property sold for a little over $1 million. Deals like these have now become a typical situation in the bay area. Market specialists anticipate it to grow in quantity throughout quarter two of this year. Sources indicate that over bidding percentages reach its peak during May. The bay area is now facing a huge demand from buyers without a matching rise from catalogue inventory. When high demand comes into contact with low supply, it creates massive overbidding and aggressive competition. Property for sale in San Leandro and surrounding regions are experiencing a phenomenal amplification of real estate phenomena. Black Diamond urges each and every one of you to apply the presented knowledge. We will continue to provide quality assistance that creates your own real estate success! Source: SF Gate