The Greater Phoenix Valley has not quite reached the frenetic pace of Realtor.com’s Top 10 Cities Selling Above Asking Price, but we could be getting close. I rather hope not.
I’m not sure activity in our market could be defined as ‘Bidding Wars’ yet. Multiple offers in the East Valley are common in lower price ranges but at the moment, tend to result in a figure fairly close to the list price. In addition, multiple offers on higher priced properties listed at market value, are occurring far less frequently. Multiple offers most definitely have an influence on home prices but first time buyers and entry-level prices ranges rely heavily on FHA financing and appraisers are understandably cautious. Unlike the Top 10 Cities below, our market could not currently be described as a heading toward a bubble.
I’ve lived through a bubble and for the consumer, it’s not a pleasant experience. Home Buyers are frazzled and disheartened, Home Sellers might realize better profits on their existing home but will encounter sticker-shock when shopping for a new place to live, the process is longer and more stressful. From a Realtor’s perspective the busy pace might seem sweet in the moment but all bubbles burst and the aftermath is usually nothing but bitter.
What we all should hope for is a strong, steady Real Estate market with natural, predictable price increases of 6 to 7 percent a year, and a constant stream of listings introduced to the market at a reliable pace. Boring but healthy.
Who’s Got the Winning Bid? Buyers Compete for Listings
By Liz Dominguez. Editor’s Note: This was originally published on RISMedia’s blog, Housecall. See what else is cookin’ now at blog.rismedia.com:
Rising interest rates, a demand for housing in challenged markets and a whole lot of buyers—that’s the recipe for a busy market being overtaken by bidding wars. But where are the largest battles being fought? According to a recent realtor.com® report, Akron, Ohio, and Worcester, Mass., are at the top of the list. The report determined which locations are experiencing the biggest increase in bidding wars by analyzing the percentage of homes that sold over listing price in the 150 largest cities in the U.S. from March 2015 to February 2018.
“Multiple-offer scenarios are no longer reserved for the usual big, fast-moving markets,” Director of Economic Research for realtor.com Javier Vivas said in a statement. “Demand for homes has spilled outward into secondary, smaller markets, and more buyers are gearing up to face fierce competition in more places around the country.”
Here are the top 10 cities that saw the biggest percentage increases of homes sold over asking:
1. Akron, Ohio
Median home list price: $150,000
Share of homes selling above list price: 20.6 percent
Increase in share of homes selling over list price: 91.7 percent
2. Worcester, Mass.
Median home list price: $286,400
Share of homes selling above list price: 41.5 percent
Increase in share of homes selling over list price: 88.1 percent
3. Lexington, Ky.
Median home list price: $287,200
Share of homes selling above list price: 22.7 percent
Increase in share of homes selling over list price: 86.4 percent
4. Irvine, Calif.
Median home list price: $950,000
Share of homes selling above list price: 30.3 percent
Increase in share of homes selling over list price: 85.5 percent
5. Greensboro, N.C.
Median home list price: $201,700
Share of homes selling above list price: 29 percent
Increase in share of homes selling over list price: 81 percent
6. Sioux Falls, S.D.
Median home list price: $240,000
Share of homes selling above list price: 32.8 percent
Increase in the share of home selling over list price: 74.2 percent
7. Madison, Wis.
Median home list price: $317,000
Share of homes selling above list price: 40.9 percent
Increase in the share of homes selling over list price: 73.4 percent
8. Louisville, Ky.
Median home list price: $242,000
Share of homes selling above list price: 26.1 percent
Increase in the share of homes selling over list price: 69.9 percent
9. Tacoma, Wash.
Median home list price: $290,000
Share of homes selling above list price: 56.5 percent
Increase in the share of homes selling over list price: 68.4 percent
10. Little Rock, Ark.
Median home list price: $176,100
Share of homes selling above list price: 13.5 percent
Increase in share of homes selling over list price: 67.5 percent
Read the whole report here. Reprinted with permission from RISMedia. ©2018. All rights reserved.
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Bill Salvatore / Arizona Elite Properties
Residential Sales, Marketing, and Property Management
Founder: AZVHV ⋅ MEMBER: Heroes Home Advantage
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