Bidding wars and sight-unseen offers...what is going on out there?!
Left: Months of Supply of Inventory in DC reach expected annual lows in Dec, Jan.
Our inventory crisis (< 1 month supply in Northern Virginia, and < 2 month supply in DC -- see charts above and below) continues, and is being exacerbated as a result of some unintended consequences of the regional MLS's new "Coming Soon" policy.
For those that don't know, starting Feb 1, the MLS imposes fines of $5000 on any agent who publicly markets a listing as Coming Soon more than 24 hours in advance of it going active in the MLS IF they are allowing showings; for properties that can't be shown, they can still be publicly advertised. As a result, some agents are no longer posting these types of listings on Zillow and similar sites, and aren't posting signs in the yards, but continue to advertise via word-of-mouth and through 1:1 conversations with agents. So it's more important than ever to have an experienced, well-connected buyer agent! For "coming soon" properties that are NOT allowing showings (and thus in compliance with the new policy), we've seen multiple instances where buyers are making offers even though they haven't seen the inside--and waiving contingencies too!
For properties that are in excellent condition, we're also seeing bidding wars in Arlington and DC already--in one case, our client bid on a $1M Logan Circle condo that went for 10%+ over list with no contingencies
. All 6 offers were at least $75k over list price. Of course, sometimes this is the sellers' strategy, as in the case of this Falls Church house, listed at $799k, but valued at $870k, which received 37 offers and sold for $969k
. We personally saw a home in Annandale priced about $50k above the recent comparable properties, and it sold another $30k higher than that with NO contingencies. We expect to see even more homes going for well above their estimated values--be careful out there, buyers
Below: Months of Supply of Inventory in Northern Virginia reach expected annual lows in Dec, Jan.