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I think it’s partially because it’s a condo-heavy market and the price point in which people would otherwise offer $100k+ over ask are more likely to be condos with high HOAs which sorta tempers the speculative purchasing you see with SFHs. Miami is just one of those places where rich people generally seem to prefer condos over SFHs. Not to say condos can’t and don’t go way over ask, happens all the time in Seattle. But not as crazy as SFHs.
What is the New Brunswick Metro lmao... Edison, the Brunswicks, Amboys and Piscataway?
It's a "Metropolitan Division." Middlesex, Monmouth, and Ocean counties, I think. I don't know why those three are grouped together compared to other neighboring counties, but I'm sure the Census has a justification published somewhere.
Another thought - in a lot of the west coast markets, listing agents will often advise sellers to list their price based roughly off of the ASKING price of comps, and not the sold price, to encourage bidding wars. Not sure of this happens in other markets.
These numbers don't seem like they are exhaustive to me.
That said, I never found "xx over asking" to be relevant anyway. Asking price is a marketing tactic, sale price is what actually indicates supply and demand. All this really tells you is about the culture in the local real estate industry.
I think the reason you see a lot of this recently is something that freakanomics discussed a decade ago: Real estate agents are highly incentivized to make a sale, but the marginal difference between selling for x vs. selling for x + y, is much smaller and not super significant to them.
The tactic of "let's just list for a low number and have an immediate bidding war" is really convenient for the agent, because they can quickly push the sale through and move on their next house (and next commission check). No wonder they like this approach.
The tactic of "let's just list for a low number and have an immediate bidding war" is really convenient for the agent, because they can quickly push the sale through and move on their next house (and next commission check). No wonder they like this approach.
Not really. Pitting the sellers against each other where the buyer does not have any price information about their competitors, while the seller has all the information results in tremendous gains for the seller. Assuming the demand is sufficiently high to cause buyers to fight to win the sale.
If anything, the markets are too hot for the agents as there is very little volume, so they have to compete more with each other for the few sales that are being made.
These numbers don't seem like they are exhaustive to me.
That said, I never found "xx over asking" to be relevant anyway. Asking price is a marketing tactic, sale price is what actually indicates supply and demand. All this really tells you is about the culture in the local real estate industry.
I think the reason you see a lot of this recently is something that freakanomics discussed a decade ago: Real estate agents are highly incentivized to make a sale, but the marginal difference between selling for x vs. selling for x + y, is much smaller and not super significant to them.
The tactic of "let's just list for a low number and have an immediate bidding war" is really convenient for the agent, because they can quickly push the sale through and move on their next house (and next commission check). No wonder they like this approach.
This is happening yes. But the asp is going up big in a lot of markets.
This is happening yes. But the asp is going up big in a lot of markets.
Of course, but I think it's more useful just looking directly at that number rather than "no. of homes that have sold $100,000+ Above" which is simply a proxy metric for asp * population.
Of course, but I think it's more useful just looking directly at that number rather than "no. of homes that have sold $100,000+ Above" which is simply a proxy metric for asp * population.
Probably just another faux metric to help Californians feel superior as their state is decaying? amirite? The south has risen!!
We moved back to the US several months ago and were looking for homes in New Jersey and in Chicago. One big reason we chose Chicago is that brokers were practically throwing properties at us while in New Jersey there was always someone willing to pay more than we could possibly afford. The real estate market of the entire NYC area but especially New Jersey is completely on fire while Chicago is not. Probably should have taken the hint, honestly.
Yeah parts of north jersey for sure. But the way they said New Brunswick is just funny
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