Bidding Wars Abound… How Long Will They Continue?
Just like with any product or service, the law of supply and demand impacts home prices. Any time that there is less supply than the market demands, prices increase.
In many areas of the country, the supply of homes for sale in the starter and trade-up home markets is so low that bidding wars have ensued, and the busy spring-buying season is just around the corner.
CoreLogic recently conducted an analysis on national home prices at the time of sale for their January 2018 MarketPulse Report and found that a third of homes sold for at least list price.
“The share selling above list price was almost three times the trough in January 2008 and
represented more than one-fifth of total sales.”
Many markets in the western part of the country and around major cities are experiencing higher shares of homes selling above list price.
“San Francisco had the largest share of homes — 76 percent — that sold for at least the list price, and
Seattle and Los Angeles followed with 63 and 51 percent, respectively. Miami had the lowest share,
16 percent, of homes selling at or above the list price.”
Increased demand during the spring and summer months, the traditionally busier seasons for real estate, will no doubt influence how many homes continue to sell over list price.
This should not be seen by sellers as permission to overprice their homes, though. Buyers are becoming more and more educated, especially those who have been searching for their dream homes for a while now while waiting for new inventory to come to market.
Realtor.com gives this advice:
“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed,
so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly under priced,
especially in areas with low inventory.”
In many areas of the country, the supply of homes for sale in the starter and trade-up home markets is so low that bidding wars have ensued, and the busy spring-buying season is just around the corner.
CoreLogic recently conducted an analysis on national home prices at the time of sale for their January 2018 MarketPulse Report and found that a third of homes sold for at least list price.
“The share selling above list price was almost three times the trough in January 2008 and
represented more than one-fifth of total sales.”
Many markets in the western part of the country and around major cities are experiencing higher shares of homes selling above list price.
“San Francisco had the largest share of homes — 76 percent — that sold for at least the list price, and
Seattle and Los Angeles followed with 63 and 51 percent, respectively. Miami had the lowest share,
16 percent, of homes selling at or above the list price.”
Increased demand during the spring and summer months, the traditionally busier seasons for real estate, will no doubt influence how many homes continue to sell over list price.
This should not be seen by sellers as permission to overprice their homes, though. Buyers are becoming more and more educated, especially those who have been searching for their dream homes for a while now while waiting for new inventory to come to market.
Realtor.com gives this advice:
“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed,
so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly under priced,
especially in areas with low inventory.”
Bottom Line
Without a large wave of new listings coming to market, buyers will continue competing with each other for the homes that are available.
If you are thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price. Meet with me today, and I can explain to you exactly what’s going on in your local area!
If you have any questions about how to list and sell your home for top dollar, just call/text me at 602-295-6807 and I can help answer all of your questions!
"Real Estate is not just a job for me, it's about making a difference in the lives of others"
Troy Erickson Realtor
Call/Text: 602-295-6807
TroyEricksonRealtor@gmail.com
Linkedin Profile
Facebook Page
Without a large wave of new listings coming to market, buyers will continue competing with each other for the homes that are available.
If you are thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price. Meet with me today, and I can explain to you exactly what’s going on in your local area!
If you have any questions about how to list and sell your home for top dollar, just call/text me at 602-295-6807 and I can help answer all of your questions!
"Real Estate is not just a job for me, it's about making a difference in the lives of others"
Troy Erickson Realtor
Call/Text: 602-295-6807
TroyEricksonRealtor@gmail.com
Linkedin Profile
Facebook Page
Troy Erickson has been blogging about Arizona real estate since 2006. He is a residential real estate agent who specializes in helping home buyers, sellers, and investors in Chandler and the East Valley. He has been recognized for his local market expertise, and frequently volunteers within his community.
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