Bidding wars returning?
With some return to normalcy in the real estate markets we are seeing a return to bidding wars in some central and northern NJ markets.
Typically, this effect is seen in communities with relatively tight supply and in those with one or more NJ transit rail stations.
For example in the area in Summit, NJ near Canoe Brook Country Club, there have been 27 home sales in the past year. While its not possible to specifically identify a bidding war from normal data sources, a pretty good indication of one is when a property sells above its asking price. We found that 19 out of 27 of these sales sold above list price. If one analyzes the data further and eliminates properties with significant condition issues, adverse locations, and atypically motivated sellers (banks / RELO companies for example), that number jumps to a whopping 19 out of 21. That’s a very big number and good sign for these markets.