Several of my clients have been in multiple offer situations over the last month, with properties coming on the market, typically not short sales, and the listing agent receives 3-10 offers, each offer outbidding the other, raising the ultimately accepted offer often over list price. I closed a sale yesterday, where I represented the buyer on the purchase where there were four offers in the first four days on the market. The seller countered highest and best and my client's offer was the best one by a small margin. The nearby comparables were in the $225,000 range, yet the home sold for $242,000. The appraiser came and was surprised by the $242,000 price. He specifically asked the listing agent if there were multiple offers, and she told him there were. He said that that was good information because that was a reason to justify the higher price. The appraisal report came in exactly at $242,000.
The market is really turning around where if a home is in decent condition, short sale or not, and priced well, even right with recent comparable sales, the home is receiving multiple offers, usually within the first week on the market.
In my previous blog post, I talked about how the Portland Metro Area is in a seller's market with 4.7 months of housing inventory. In some areas the inventory is below that, especially in the hotter selling low priced inventory of <$250,000 in Portland and <$200,000 in Clark County, Washington.
Last week I was having a chuckle with another agent where I said that I would call this blog "Pink house with glitter ceilings" because even a house I know that is pink on the inside and outside with glitter on the ceilings has recently gone pending after just 2 months on the market. When houses like that are moving, we know that there is a change in the market.
With the simple rules of supply and demand: low inventory and high demand which is showing itself through multiple offers, I think we are seeing the bottom of the market for the low prices. Perhaps we have already passed it and will see that we were in it now, six months from now.
If you are interested in looking at real estate in Portland, Oregon or Clark County, Washington, please contact me.