Our David Bates noted last Wednesday that more and more Hub condos were going for near, at or over—sometimes well over—asking: "According to a recent breakdown I did on MLS, Boston condo buyers on average are paying 99 percent of the asking price and 98 percent of the original ask. As well, condo sellers are, at an unprecedented rate, accepting over-ask offers."
Moreover, it's happening a lot more than it used to: "My analysis of MLS reports show that, in the first few months of 2011, Boston condos sold on average at 96 percent of the asking price. In fact, some condos even started a little high and had to adjust their prices down."
Now comes some frightening anecdotes (or heartwarming ones, if you're a seller) from The Globe's Jenifer B. McKim re: what's been happening because of these condo pricing wars. Like this one about an Allston renter turned first-time homebuyer:
Moorman was ready to commit to a mortgage, but he wasn't prepared for the competition—a flood of people like him vying for a limited number of homes in the $300,000 to $500,000 price range. The software engineer lost out on two properties before expanding his search to Jamaica Plain, where he secured the right to buy a condo by bidding 12 percent above the asking price. What's causing all the over-asking? The usual suspects: absurdly low inventory, due in part to anemic housing construction over the last, oh, two generations; the region's perpetual popularity with newcomers; record-low mortgage rates. Luckily, David Bates also has advice should you find yourself in competition for that must-have home. Click here. There.
· Scarcity of Homes Around Boston Sparks Bidding Wars [Globe]
· Over the Top! Offers Above Asking Abound in the Hub [Curbed Boston]
· What Is the Boston Condo Market On? [Curbed Boston]
· No Surrender: Four Tips for Winning Multiple-Offer Situations [Curbed Boston]