October 3, 2009
First-time home buyers scramble for houses
Bidding wars have broken out in the Boston area, as first-time home buyers eager to take advantage of tax credits compete for houses, real estate agents say.
The $8,000 tax credit is to expire next month, creating a sense of urgency, The Boston Globe reported.Since sales must be finalized by Nov. 30 and real estate deals can take up to 60 days to finalize, prospective buyers of lower-price homes are pushing to sign purchase agreements as soon as possible. They are also driving up prices on the most desirable properties.
There is a shortage of affordable houses in the area, said John Schjolden, a real estate agent specializing in selling bank-owned properties. He said a two-family home in Dorchester brought in more than 30 offers, some significantly above the asking price.
David Shortsleeve, manager at Coldwell Banker in Worcester, said work to find homes between $150,000 to $250,000 has been unceasing since Labor Day.