Market Update, February 29, 2024

We’re seeing more multiple-offer situations with our clients. For example, we recently submitted an offer for a buyer with at least twelve other offers. Another buyer was competing with at least five other offers.

However, our experience may not reflect the entire local market. So, we decided to look at homes sold this week to understand what’s true.

We looked at homes sold in the past three days that were for sale five days or less and those on the market 45 days or more. 

When sellers accepted an offer in five days or less, homes sold for more than the asking price 40% of the time. 43% sold for the asking price, and just 17% sold for less than the asking price.

One home sold for 110% of the asking price, and many sold between 103% and 107% of the asking price. 

It’s likely that about 40% of the homes that were under contract quickly had multiple offers.

Almost all homes that took 45 days or more to sell sold for less than the asking price. The average was 95% of asking. Those homes weren’t subject to the competitive bidding that benefitted sellers whose homes sold more quickly.

Clearly, competitively priced homes sell quickly and for more money than others that linger on the market and sell for less than the original price. The homes that sell for more than the asking price do so because they’re in high demand and receive multiple offers. The competitive atmosphere around these homes drives prices higher, just like a well-attended auction.

If you’re a buyer looking for a bargain, take a look at homes that have been on the market for a while. If you’re a seller, start out with a competitive price and a well-prepared home.