Bidding Wars Abound How Long Will They Continue

Dated: 02/01/2018

Views: 222

Image title

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 underpriced, 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 your home, now may be the time to do so before more competition comes this spring. Let’s get together to determine the demand for your house in our area.

Blog author image

Gillian Cunningham

Gillian Cunningham’s name is synonymous with true professionalism, extraordinary knowledge, exceptional customer service, strong work ethic and high integrity standards. Gillian’s personal approac....

Want to Advertise on this Site?

Latest Blog Posts

Collin County Construction Outer Loop

CONSTRUCTION SOON TO BEGIN ON NEXT PHASE OF COLLIN COUNTY OUTER LOOPCollin County is currently acquiring the right-of-way needed to extend the Collin County Outer Loop. The next phase is scheduled

Read More

Construction Soon To Begin On Next Phase Of Collin County Outer Loop

Collin County is currently acquiring the right-of-way needed to extend the Collin County Outer Loop. The next phase is scheduled to begin in early 2019 and stretches between the planned northern

Read More

Feb 20 2018 32065 1

NEW CONSTRUCTION EXPECTED TO START IN 2018 ON POLO RIDGE RANCH COMMUNITY PLANNED FOR KAUFMAN COUNTYEarlier this month, at a council meeting, the City of Mesquite approved a plan for a new

Read More

Hot Home Colors For 2018

We are loving a couple of them!  Behr's "In the Moment" reminds us of the beach (I think we're missing the beach).  Also, PPG's "Black Flame" for a front door.  Super excited to

Read More