I was recently at a fundraiser and they had a fantastic auctioneer. He whipped the crowd into a frenzy and was able to achieve multiple bids and amazing prices for all of the packages offered. As I watched this, it reminded me of a property my clients and I just bid on, however no auctioneer was required to frenzy the bidders. The home itself, was enough to pique everyone’s interest. They received 11 offers! Although we got creative with earnest money, extended post closing lease back and other aspects of the contract, unfortunately, we did not win “the package” this time. We will get the next one!
This experience got me thinking. Is it truly a matter of low inventory, or is it more a case of super high demand for a smaller pool of “packages”. I think the stats below will show that while of course, yes inventory is at all-time record lows, it seems that the frenzy for buying homes may have the upper hand in creating bidding wars.
I will use Glencoe as my example, however most North Shore suburbs have similar stats.
’08-’11 - Average 120 homes on market
’12-’19 - Average 80-100 homes on market
’20-’23 - Average 25 homes on market
I realize this makes it seem like low inventory is the culprit. However, if we dive deeper, we will see that perhaps that is not the main cause.
’08-’12 - Average 110 homes closed/year
’13-’19 - Average 160 homes closed/year
’20-’23 - Average 180 homes closed/year
This begs the question; how can we be selling so many homes if there is such low inventory?!
The answer lies in the frenzied pace in which buyers are gobbling up homes, possibly faster than ever before.
’08-’12 - Days from listing to contract between 58-117
’13-’19 - Days from listing to contract between 22-68
’20-’23 Days from listing to contract between 6-29!
Couple this information with the fact that the number of showings per listing has soared from an average of 3 to over 8, and you get the sense that the market may not slow until the plethora of buyer's temper their pace.
RICK’S PICKS
I will just share 2 very cool listings I saw in the most recent Christie’s International Real Estate Ad. Enjoy. (And of course, contact me to make a full price cash offer!! ;))
Sleek California!
Awesome Arizona!
https://rb.gy/plr3w
