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