Sales remain strong as tight inventory continues to push home values up. This trend is tempting many sellers to test the market by listing their properties higher than their prior sold counterparts, just to see what they may be able to get. Others are choosing to list at prices more in line with past sales, expecting multiple offers that will bid the final price above what they are asking. In the current market, existing homes in popular spots like NE Boise and SE Meridian are selling for an average of 103% of asking price. But overall, the sold prices are still averaging between 93% and 98% of asking price.
We can’t deny this is a seller’s market, but it is important for people listing their homes to know that buyers aren’t going to bite at just anything. They know the market is tough so they are getting prepared, doing their research online, touring each home that comes available, and getting super savvy about the market in the process. Seasoned buyers can clearly see when a home is priced unreasonably, and they are moving on…choosing to wait patiently for the right home at the right price rather than rush to a rash and potentially foolish financial decision on an overpriced property.
Although price is often the most weighted factor in the strength of an offer, other terms such as earnest money, the closing date, seller contributions, financing details, lender capability, and inspection contingencies are also playing a big part in a seller's decision to accept an offer. Even if the property doesn’t have multiple offers, a weak offer or an offer with questionable or complicated terms may be declined by the seller due to the likelihood that a stronger offer from a more secure buyer may still be quick to come.
Being educated on the current market and expected trends is key for both buyers and sellers to be successful in their real estate transaction. Having a knowledgeable, local real estate professional to help in that education process is certainly something that is valued and sought.
Here are the March 2016 market statistics for Ada County compared to March 2015:
· 788 closed sales – up 13.5%
· $234,950 median sales price – up 5.4%
· 56 days on the market – down 13.8%
· 1,590 pending sales – up 24.2%
· 1,796 units of inventory – down 17.4%
· 2.6 months supply – down 27.8%