Our shifting market will be seeing a lot less crazy overbidding in 2017 as the gap narrows between list and sale prices.
I’m expecting the list-low, sell-for-more pricing strategy to continue throughout next year. But as our market evens out, it’s likely we’ll see sale prices that are a lot closer to their list prices.
The average overbids in October-November 2016 for houses and condos were 5.5% and 4%, down by half in the same time last year. This pattern will set the pace for 2017 sales, as buyers and sellers reference comps and base values on late 2016 activity.
I’m predicting that a small portion of properties will sell for 25% or more next year—houses in highly desirable neighborhoods, and “classic” condos with period detail in smaller buildings that are near popular retail areas and transportation. But the majority of sellers will be wise to expect values within comp ranges, and set their list prices closer to the likely values.