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    Bidding Wars Abound… How Long Will They Continue?

    Just like with any product or service, the law of supply and demand impacts home prices. Any time that there is less supply than the market demands, prices increase.

    In many areas of the country, the supply of homes for sale in the starter and trade-up home markets is so low that bidding wars have ensued, and the busy spring-buying season is just around the corner.CoreLogic recently conducted an analysis on national home prices at the time of sale for their January 2018 MarketPulse Report and found that a third of homes sold for at least list price.

    “The share selling above list price was almost three times the trough in January 2008 and represented more than one-fifth of total sales.”

    Many markets in the western part of the country and around major cities are experiencing higher shares of homes selling above list price.

    “San Francisco had the largest share of homes—76 percent—that sold for at least the list price, and Seattle and Los Angeles followed with 63 and 51 percent, respectively. Miami had the lowest share—16 percent—of homes selling at or above the list price.”

    Increased demand during the spring and summer months, the traditionally busier seasons for real estate, will no doubt influence how many homes continue to sell over list price.

    This should not be seen by sellers as permission to overprice their homes, though. Buyers are becoming more and more educated, especially those who have been searching for their dream homes for a while now while waiting for new inventory to come to market.

    Realtor.com gives this advice: “Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

    Bottom Line

    Without a large wave of new listings coming to market, buyers will continue competing with each other for the homes that are available. If you are thinking of selling your home, now may be the time to do so before more competition comes this spring. Let’s get together to determine the demand for your house in our area.

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    Lori Loesch

    Lori Loesch is our creative and joyful longtime Nashville resident. She has had a fascinating career that includes sales management, real estate, marketing, design and publishing. Lori is detail oriented and enjoys challenges and learning new skills. As a people person, she thrives on encouraging and helping others. Lori never meets a stranger and that is a wonderful skill to have in the real estate market. Lori joined The Milam Group in 2017 as the Marketing/Listing Coordinator. Her ability to design artwork, develop and implement marketing strategies, along with her curious spirit in the ever-changing world of social media, gives her an edge to make her the best Marketing Coordinator on the planet. “I enjoy going to work...not everyone can say that. Working at The Milam Group lets me be creative every day…and I love it!!! In the process, I get to help people and develop wonderful lasting relationships while working with an outstanding team of real estate professionals. I am truly blessed.” Lori was born in the Midwest, but spent her formative years in Florida. She and her musician husband, Joe have lived in Nashville for over 25 years. In her spare time, you will find Lori spending time with her family, working outside and involved with activities at her church. She is an accomplished inspirational artist and her artwork can be seen at LoriLoeschArt.com.

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