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Bidding wars: Hype or reality?

by Ingrid Miles, CBR, REALTOR®

I'd argue it's a bit of both, but let's check out some numbers.

Just looking at Boston, the number of homes going under agreement in three days or less has steadily fallen over the past three months, Redfin reports.

Roughly 10 percent of homes that have hit the market this spring in the Hub have gone under agreement in three days or less.

That's down from an earlier Redfin estimate from late March, which pegged the number at 15 percent.

Moreover, the trend appears to be a downward one, with just 6 percent of homes that hit the market in Boston in the month ending April 12 getting scooped up in 72 hours.

How do we stack up with other cities?

An earlier Redfin chart has 29 percent of Austin homes and 28 percent of D.C. homes being put under agreement in three days.

So does this mean that bidding wars are completely bogus? No, but when they happen, such food fights are likely to break out over homes that are priced right and are in good condition and in good locations. And given all the overpriced fixer-uppers that dominate our local market, such homes are few and far between.

Still, given the propensity of real estate sales industry to spin and distort the facts, skepticism is certainly warranted.

The Real Estate Cafe has done some great number crunching on this, questioning whether the buzz about bidding wars is simply another real estate industry sales tactic.

by Scott Van Voorhis  April 12, 2012 05:57 AM

Massachusetts Pending Home Sales Continued Positive Trend in March for 11th Straight Month

by Ingrid Miles, CBR, REALTOR®
First month since June 2011 to go over 4,000 homes mark
 
WALTHAM, Mass. – April 10, 2012 – The Massachusetts Association of REALTORS® (MAR) reported today that the number of single-family homes put under agreement in March went up again for the 11th straight month compared to the same time in 2011. Condominium pending sales were also up from the same time last year. Pending figures are a leading indicator of actual housing sales in Massachusetts for the following 2-3 months.
 
“Activity in the market place continues to build as reflected in the number of homes that went under agreement in March,” said 2012 MAR President Trisha McCarthy, broker at Keller Williams Realty in Newburyport. “We are taking important steps towards market recovery with each successive month of increased pending sales.”
 
The number of single-family homes put under agreement in March was up 38.8 percent compared to the same time last year (*3,256 homes in 2011 to 4,519 homes in 2012). This is the 11th straight month of year-over-year increases and the first month since June 2011 to go over the 4,000 homes under agreement mark. This month also had the most pending sales in March since MAR has been tracking the data. On a month-to-month basis, single-family homes put under agreement went up 34.2 percent from 3,368 homes in February.
 
The number of condos put under agreement in March was up 30.4 percent compared to March 2011 (*1,422 units in 2011 to 1,854 units in 2012).  On a month-to-month basis, condos put under agreement were up 45.2 percent from 1,277 units in February. 
 
About Pending Sales:
The tracking of signed purchase and sales agreements (also called “pending sales”) provide reliable information about where the real estate market is heading in coming months. 
 
A pending sale or a sale “under agreement” is when the buyer and seller agree on the terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close and be recorded as such.  MAR is the only organization which compiles this statewide information from Multiple Listing Services each month.
 
About the Massachusetts Association of REALTORS®: 
Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 18,000 members.  The term REALTOR® is registered as the exclusive designation of members of the National Association of REALTORS® who subscribe to a strict code of ethics and enjoy continuing education programs.
 
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*Please note: As of January 2012, all 2011 pending home sales data has been updated to reflect new collection methods from the three REALTOR® affiliated Multiple Listing Services in Massachusetts via 10K Research and Marketing.
Editors and reporters: Please note that the term Realtor is properly spelled with an initial capital “R”, per the Associated Press Stylebook.

Displaying blog entries 1-2 of 2

Contact Information

Photo of Ingrid Miles, CBR, SRES, Lead REALTOR Real Estate
Ingrid Miles, CBR, SRES, Lead REALTOR
Keller Williams Realty
11 South Main St & 1 Merrimac St
Topsfield & Newburyport MA 01983 & 01950
Direct: 978-471-9750
978.861.4218
Fax: 978-861-4218

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