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Ready to pay more?

Posted by Scott Van Voorhis May 30, 2013 10:33 AM

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Behind every bubble is a panicky rush to buy a suddenly scarce and coveted product before prices go up again. Get yours now and get it fast before someone else grabs it.

It was true for tulips in 17th century Holland and of homes in 21st century America, circa 2005.

Are we now in for a repeat, barely a decade later?

It's too early to say, but a new Redfin survey points to some big and pretty rapid shifts in how buyers perceive the real estate market.

Faced with scarce listings and rising competition, growing number of buyers are staying in the hunt and opting to ante up in order to get what they want, the survey of 1,353 active home buyers finds.

Roughly 41 percent of buyers surveyed by Redfin this spring say low inventory and fierce competition for homes has made them more willing to pay more for a house.

That represents a pretty dramatic increase - just 26 percent at the end of 2012 said they were ready to shell out more cash to seal the deal.

In another telltale sign, 67 percent of the buyers surveyed now say it's a sellers' market now, up from less than half during the first quarter.

By contrast, just 31 percent think it's a good time to buy in their neighborhood.

Early warning signs of the next real estate bubble, or just a healthy rebound? What's your take?

This blog is not written or edited by or the Boston Globe.
The author is solely responsible for the content.

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About boston real estate now
Scott Van Voorhis is a freelance writer who specializes in real estate and business issues.

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