I get asked this all the time. Each market is truly different; my team works Minnesota, Wisconsin, and Florida, and each of them have their own culture, laws, and most important: Market
Pricing- why is everything so expensive?
Dated: November 23 2020
Views: 143
A lot of buyers are telling me how frustrated they are about the high prices of houses, and how much more than asking price they can be expected to pay.
I just want to explain this in a little more detail, just how this works. As of today, in the Twin Cities, there is 1.9 months supply (9554 homes on the market). Six months supply is considered an "even market", so we are currently, clearly, in a seller's market.
For the first time in my real estate career, sellers are truly getting it. I don't have to argue about listing prices. Sellers are seeing their neighbors' houses selling for well over asking price, in multiple offers. The main way this happens is to list them just slightly below market value, to create the "feeding frenzy" that is multiple offers.
I encourage my sellers to list $5-10k below recommended market value, so that the house will sell in multiple offers for $5-10k over market price.
So, in short, yes, houses are selling for way over asking price, but that leads to a little less inflation that it would seem, at first blush.
This is definitely a sellers' market, but now is the time to feed at that trough, if you are thinking of selling!
- Chuck
Chuck Gollop
Licensed Realtor, Stand-up Comedian, Retired Police Sergeant, and Licensed Realtor at Homes for Heroes®. I took my 25 years of law enforcement experience, threw in my experience as a stand-up comic ....
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