The second deal that I was recently involved in was that of a development property, specifically a rezoning from duplex to four units. This was a project that required a large amount of capital, knowledge, time and skill; it was not one that your average Buyer could handle. This property received four offers and sold for $280,000 over list with a no-subject offer.
Finally, the third scenario that I was involved in last week was a multiple offer situation on a condo. The agent had first agreed to look at offers “as they come” only to renege on this plan after seeing the response at the public open house. This property received numerous offers and sold for a record-breaking price per square foot for the building.
The fact that these three sections of the market are so active begs the question, when will the ripple effect transfer to the rest of the market? Each time a sale takes place the owner of that home is displaced and must go somewhere else, usually upwards in the market. At this current time we are not seeing this natural progression; homes above two million are receiving far less interest than those priced below this benchmark. I believe that in a very short period of time sales will begin to pick up rapidly in these middle/higher end segments of the market purely due to the transfer of demand.