Looking at the home sales in Belmont during the first quarter, one can see from this spreadsheet that every seller who listed their home received over their asking price. They were only a few exceptions. One was a home that was a short sale which we took out of the mix since those list prices are arbitrary, one was an off-market sale. We discounted any home that had been listed since last year to reflect the more robust 2013 season.
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The percent that sellers are receiving over their asking price is mind boggling. It all has to do with the short supply of homes and the large numbers of buyers trying to take advantage of the historically low interest rates.
Of course that could change. Interest rates could rise making homes more expensive, or with rising prices, more “Equity Sellers” will develop as homes which were under water can now be sold for a profit. More inventory of homes means more competition for sellers as buyers will have more homes to choose from.
The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.