As a real estate professional within The Greater
Boston Area, it is all too commonplace to be aware of the fact that
the average days on market for properties is decreasing; and
mightily so at that. Even if not directly involved in this
business, headlines are abundant explaining this new phenomenon
that we are in, with the real estate market as a whole currently
thriving. As a matter of fact, according to USA Today, this past
month of February marked this months fastest home sales throughout
the nation since February of 2007.
Across the United States, February of 2013 saw half of the homes
complete the buying and selling transaction in less than 98 days
while the other half sold slightly after this. This time span,
however, is far greater than what we have experienced in our local
markets where multiple offers are pouring into the office upon the
conclusion of an open house mere days or hours after a property has
been placed live on the marketplace.
The average decline in a propertys days on the market until its
closing dropped 48% across the country in specific markets where
there were vast drops in the amount of inventory. Massachusetts,
especially closer to the Hub, is undoubtedly one of these
localities where supply declines have been so drastic, however it
has been met with an increasing demand for property from the
broader populace.
Due to the intensity of the market and its current fast pace
that is expected to last in the near future, price reductions are
less likely to occur. This is especially true due to bidding wars
which are driving the majority of the sales prices higher; often
over asking price. Looking back to January of 2013, buyer
confidence jolted forward with 28% of sales coming from cash
buyers. Moreover, this displays individuals ability to spend but
more-so their overall trust and willingness to spend given our
revitalized present day situation in the real estate industry and
greater economy.
More Information: USA Today