More Competition, Market Going Up

competitionRemember how I keep saying I think the market is going to slow down a little bit as the winter comes.  Well, we are now in November, and the real estate market is probably going up 2% a month or more.  That is more than 24% a year (don’t forget about compounding numbers).

To give some examples.  There was a probably in one of farm areas listed for $89,900.  The City completely boarded it up, because it’s been abandoned for 24 months (and become bank owned in the process).  We know the listing agent submitted an offer at 125,000 to beat the other highest offer.  She calls and said someone just offered 150,000 cash and left a 150,000 cashier’s check in the office.  This property has been listed two days and it has 30 offers, at almost double the list price.  Wow.

We are still submitting offers, and we do have one more we put into escrow, I will talk more about it when it closes escrow.   But we are wanting to get 2 more in escrow this month, so we can at least close our goal of 3 closings per month.

Some of my main connections in the REO offices are pretty discouraged.  They are getting no listings and so much competition over them.   One did tell me that she is getting about 10 new listings this week, which his her biggest week in a while, but nothing in my target zone so far.

The good news, for the properties we have for sale:  House #17 went into escrow today, the buyer has $150,000 down and wants to close in two weeks; House #15 has been in escrow for about a week, I am trying to coordinate the appraisal issues; we just listed the recently complete House #18 and we already have a full price offer.

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One Response to “ More Competition, Market Going Up ”

  1. Mike Z says:

    I see the same thing in my market. But something is really bugging me as it feels very artificial. I keep asking myself did the number of buyers really double or triple over night? Or did the inventory pipeline get disrupted some how. I know where I place my bet. But I can see the headlines in the press already. And as we saw in 2005 the herd can cause prices to explode.
    Investing is never boring …

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