Can you feel it? The frenzy, creeping in on you?
Those watching closely may have noticed how the market has ‘picked up’ over the last week or two.
We’ve had more buyers than sellers for a while now, so that alone doesn’t constitute a frenzy. In a low-inventory environment, you should have multiple offers on every quality property.
It’s the velocity.
Here are signs of frenzy-building:
1. It’s been hot. A year ago, the frenzy was just becoming obvious – but at this point, the market has been hot for the 18 months.
Both buyers and sellers are expecting a frenzy now.
All three indicators from last month are pointing to more frenzy.
2. How fast listings go pending. With listing agents riding high on their horse, you typically see them play around for 7-10 days before a new listing gets marked pending. It seems like more listings are going pending faster – and it’s about the same as last year (though this year’s haven’t all closed):
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3. The percentage-paid-over-list-price. It’s been standard to see homes sell for 5% to 10% over list price, but it can get crazier.
This was a fascinating – though extreme – example. A great-looking house with fantastic view, but it is right on La Costa Ave. and located in an area with terrible soil quality:
From the remarks: This property is for cash buyer, builder, or investor. Home has compaction and soil issues. Only shown to qualified buyers.
The soils problem must be serious, given their initial list price of $500,000. Yet it sold for $685,000 cash, or 37% over list price and closed in ten days.
It must have been worth it to someone, and probably worth close to that for many, but it is the percentage that gets me. With the problems, wouldn’t you try to buy it for 10% or 20% over list?
4. It’s March. The wait-and-see buyers haven’t had any indications of inventory flooding the street – in fact, we’ve had fewer new listings this year than last (between Jan. 1 and March 5th):
Buyers are getting antsy – for them, there aren’t any signs of relief.
It is a great time to sell – contact Jim the Realtor to get started today!
(858) 997-3801 cell or firstname.lastname@example.org.