Written by Steven Thomas // March 21, 2022
WITH THE NUMBER OF AVAILABLE HOMES TO PURCHASE AT EXTREMELY LOW LEVELS, THERE SIMPLY ARE TOO MANY BUYERS COMPETING AGAINST EACH OTHER
AN INSANE MARKET: When the expected market time drops below 40-days, the seller’s market shifts from “hot” to “insane,” and today it is at 20 days.
A three-bedroom, two-bathroom, 1,500 square foot home on a 10,000 square foot lot, built in 1972, was placed on the market on the first Wednesday of February at $999,000. There was a line going down the street to view the home during a three-hour window on Saturday and a three-hour window on Sunday. By Sunday evening there were more than 20 offers submitted to the listing agent. The seller countered to all offers and asked them to come back with their highest and best price. The home closed on during the first week of March at $1,200,000, an astonishing 20% above its list price.
Not every home sells 20% above its list price. In Orange County, the sales to list price ratio for detached homes so far in March is 103.5%. That means that the average closed sales price was only 3.5% over the asking price. An unbelievable 73.5% of all closed detached homes sold above their list price during the first few weeks of March. The median days on market is 6 days, less than a week. It would probably be even faster, but there are just too many offers to sift through.
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