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, thesupply of homes for salein 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.
CoreLogicrecently conducted ananalysison national home prices at the time of sale for their January 2018MarketPulse Reportand 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.”
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. Contact Morrie Finkelstein at 754-234-0637 who can help you determine the demand for your home in your area.
Oh by the way, I am never to busy for your referrals.
Author:Morrie Finkelstein Phone: 754-234-0637 Dated: February 13th 2018 Views: 65 About Morrie: ...
View our latest blog posts in your RSS reader. Click here to access.
We are a full service real estate brokerage with over 100 agents to serve you. Let us be your real estate resource. Regardless whether you need to buy or sell now, or sometime in the future, let us help you. We are no pressure and will always try and help. Contact us at 561-792-3948 now.
Which Home Remodeling Projects Are Worth Your Money?Homeowners should
"Margarita Zhemukhova very quickly found us the property we were looking for at a price we could afford. In working with her we found her to be always available to meet, very prompt in returning e-mails and phone calls (within minutes), pro-active in altering us to the next steps in closing and a pleasure to work with. I would definitely use her again and recommend her to anyone needing real estate services.