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Spring market update
The spring market remains steady and strong. Inventory is building in many areas, but overall we're still seeing lots of competition and multiple offers - both in and around the city, and far-reaching out to the suburbs. In many markets especially the higher end, the trends we're seeing include waived contingencies, pre-inspections and as always aggressive sales prices. First-time home buyers are especially having to get creative with their offers - including being flexible on timing and closing dates. Use and occupancy agreements are also becoming very prevalent and a strong negotiating tool for buyers.
In the last month of May, these are the toughest price points in some local area markets and the average list to sale price:
Newton $800-<900k - SFs sold on average for 11% over asking
Waltham $400-<450k - SFs sold on average 4% over asking
Arlington $600-<800k - SFs sold on average 7% over asking
Brookline <1.5 million - condos sold 2%-18% over asking
Watertown $450-<500k - condos sold on average 7% over asking
Wellesley $700-<900k - SFs sold on average 3% over asking
These numbers being said, buyers should not be discouraged. Interest rates are still low and affordability is still high. There is also still room to negotiate on some properties - one theme I note in today's market is how much buyers gravitate towards that "move-in ready" home, the "cream puff" as a colleague calls it - these are the homes that receive the crazy offers. But in some towns there are homes that sit on the market, and even after a week a seller may be quicker to negotiate because they already know they missed some mark to not receive an offer quickly in this market. Those can be the homes to swoop in on! Of 15 buyer transactions this year (2015), 7 have been under asking and 11 of my buyers have gotten offers accepted on the first try (& more than half of those still in multiple offer situations!). So again, buyers don't be discouraged - just be prepared, flexible and make sure you have the right agent on your side.
The purpose of my newsletters is to help you be prepared as possible, so that together we can achieve your real estate goals. As always, feedback and questions welcome!
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