xBoxBoy
I wish that I could find supporting evidence but it is just impossible to quantify. I wish I could. Maybe I’m just trying to understand and get others to consider something they may not have before. This all plays out in a very unpredictable way on a daily basis. Properties can sit on the market without an offer for weeks or months and suddenly 3 offers show up in one day. I constantly try to understand it and it constantly surprises.
Here is an example of how the Internet changed things. In the past you went to see a hot new listing and made a decision as to the value based upon your perception of the balance between supply/demand . Now you go to see a hot new listing and run into several others waiting out front for their chance to see it also. Finding one you like isnt easy and other buyers are looking for the same thing you are. You see demand in front of your face instead of relying on what you thought it was. You may say “i’m not gonna get caught in a bidding war or compete with those buyers” so you move on. Not everyone thinks that way and the house sells for more than you thought it was worth. This happens a couple times. Prices are set at the margin which cuts both ways.
