Insights from the 2013 bidding wars

Approximately 34% of the units listed for sale in MLS during 2013 sold above asking price. Units sold anywhere from 1% to more than 20% above list price. Different neighborhoods experienced different degrees of bidding war activity. For example 46% of units for sale in the South End sold above asking price. Charlestown, South Boston, and the West End all saw 40% or more of the units selling above asking price. (Click here to see a chart showing bidding wars by neighborhood).

What is particularly interesting about the bidding wars in 2013 is that the units most in demand, according to the highest percentage of sales recording above asking price, were not the lowest priced units in the market. The lowest price segment certainly saw bidding wars, with 42% of the sales in the $0-$499,999 price segment selling above asking price. However, the price segment with the highest percentage of above-asking price sales was the $500,000 - $999,999 price segment.  And, in fact, 39% of all units that sold above asking price fell in the $500,000-$799,999 price range.

So far in 2014, the bidding wars appear to be fewer in number than what the 2013 market experienced, although it is still early in the year to draw conclusions about how the Spring market may finally trend. To date, only 20% of the Boston condominium sales have sold above asking price.  This time around, we see 31% of the units sold above asking price falling in the under $500,000 price range, 44% of the units selling above asking price falling in the $500,000-$999,999 price segment, and 25% of the units selling above asking price falling in the $1 Million+ price segment.

For more information on the Boston condominium market, contact RESIS.