The intense market competition led to more properties being sold above asking price. In 2012, the share of homes sold with a price above the list price increased to 33.1 percent, more than doubled the long-run average of 15 percent over the last 20 years. It was also the highest since 2005 when the housing market was extremely competitive. One third of the REO properties in 2012 were sold above asking price, as compared to 30.4 percent for short sales and 19 percent for equity sales.
Properties also stay on the market for a much shorter time than they did in 2011 because of the increased market competition. A typical residential property stayed on the MLS for five weeks in 2012. That’s a significant drop from 10.5 weeks in 2011, and was the lowest since 2005. Historically a property stayed on the market for an average of 6.4 weeks.
With the tight supply conditions not expected to disappear anytime soon, the intense market competition is here to stay. Multiple offers and above asking-price offers most likely will continue to be the norm of the market in the upcoming year.
If you are a seller for whatever reason, it is a good time to put your property on the market this year.