As a real estate professional within The Greater Boston Area, it is all too commonplace to be aware of the fact that the average days on market for properties is decreasing; and mightily so at that. Even if not directly involved in this business, headlines are abundant explaining this new phenomenon that we are in, with the real estate market as a whole currently thriving. As a matter of fact, according to USA Today, this past month of February marked this months fastest home sales throughout the nation since February of 2007.
Across the United States, February of 2013 saw half of the homes complete the buying and selling transaction in less than 98 days while the other half sold slightly after this. This time span, however, is far greater than what we have experienced in our local markets where multiple offers are pouring into the office upon the conclusion of an open house mere days or hours after a property has been placed live on the marketplace.
The average decline in a propertys days on the market until its closing dropped 48% across the country in specific markets where there were vast drops in the amount of inventory. Massachusetts, especially closer to the Hub, is undoubtedly one of these localities where supply declines have been so drastic, however it has been met with an increasing demand for property from the broader populace.
Due to the intensity of the market and its current fast pace that is expected to last in the near future, price reductions are less likely to occur. This is especially true due to bidding wars which are driving the majority of the sales prices higher; often over asking price. Looking back to January of 2013, buyer confidence jolted forward with 28% of sales coming from cash buyers. Moreover, this displays individuals ability to spend but more-so their overall trust and willingness to spend given our revitalized present day situation in the real estate industry and greater economy.
More Information: USA Today