bostonbubble.com

[RealEstateCafe]

POSTED ON TWITTER: http://bit.ly/BidInquiry

Q: #BiddingWars #PocketListings #LowInventory Oh My! Time to investigate/regulate? http://bit.ly/BidCon @Mass_Consumer @MassAGO @SenWarren

EXCERPTS:

"How big is the problem?

During 4Q2010, just 10 sales or less than 6% of listings in Cambridge sold over asking price; last quarter, 115 properties or nearly 60% of listings sold over asking price – a stunning ten-fold increase!

What was the total additional cost to homebuyers involved in blind bidding wars [in Cambridge during 4Q2013}: a staggering $7.8M.

...entering into 1Q2014, the stage is set for the problem to become more acute. ...inventory is down by two-thirds in Cambridge, ...an "On-Market SnapShot" revealed just 33 listings on 1/9/14, down from 93 on the same day a year earlier."

Please Retweet 140 character message above, or share on other social media then take the poll to say what you think should be done.
_________________
Bill Wendel
The Real Estate Cafe
Serving a menu of money-saving services since 1995
97a Garden St.
Cambridge, MA 02138
617-661-4046
realestatecafe@gmail.com
http://realestatecafe.com/blog
http://twitter.com/RealEstateCafe

[RealEstateCafe]

Will runaway bidding wars create real estate refugees in Cambridge? What would MLK do?

http://bit.ly/BidWarLab

Do the statistics above point to a New Gilded Era in the former People’s Republic? What’s the best way to address that question? To start, would any homebuyers, researchers at Harvard or MIT, open data activists, or smart city app builders like a closer look at patterns behind sales $50K or more over asking price in the screen sheet shown in the blog post above?
_________________
Bill Wendel
The Real Estate Cafe
Serving a menu of money-saving services since 1995
97a Garden St.
Cambridge, MA 02138
617-661-4046
realestatecafe@gmail.com
http://realestatecafe.com/blog
http://twitter.com/RealEstateCafe

[RealEstateCafe]

UPDATE: Sent this email to Cambridge Consumer Council today, and would like to repeat a request made here 30 months ago:

Would any Boston Bubble readers -- whether homebuyers, researchers at Harvard or MIT, open data activists, or smart city app builders, like to take a closer look at patterns behind sales $50K or more over asking price? I'm working on a Bidding War Scorecard for Cambridge for June 2016, and invite others to explore this question (thanks for @MITCRE for Retweeting!)

https://twitter.com/RealEstateCafe/status/755396658633072640

+ + +

OPEN LETTER TO CAMBRIDGE CONSUMER COUNCIL:

I was encouraged earlier this week to see City Councilor Kelley, his colleagues and city staff hosting a public hearing on the impact short-term rentals are having on the housing market, affordable units in particular.

As you know from our previous correspondence and brief conversation earlier this year at your office, I have expressed concern on several occasions about the BLIND bidding war process and shared some data with you and city council staff.

In addition, I have brought this matter to the attention of the Attorney General's office, via the comment form on their site, informal conversations with staff at MIT and Code for America's Hack for Change, and a voice message last week.

While none of this has resulted in any feedback, I still want to know if anyone is paying attention to this issue and how to share additional data? As a teaser, I will simply ask if anyone charged with protecting consumers would like to know how the situation described below has changed over the past 30 months, based on an analysis of MLS data from June 2016?

Imagine what would happen if the state of Massachusetts or your city or town imposed a real estate transfer tax of $50,000 on each transaction? Consumer outrage, right? Maybe even widespread opposition within the real estate industry?

Yet, during 4Q2013, bidding wars became so common in Cambridge MA that one in five real estate transactions sold for $50K or more over it’s asking price. In both 4Q2009 and 4Q2010, only one home sold for more than $50K over asking price in the People’s Republic of Cambridge. In the past twelve months, bidding wars $100K or more over asking price have risen three fold, from 1 in 35 properties in 4Q2012 to 1 in 13 during 4Q2013. Stunning!

FULL TEXT (Jan 2014): Consumer advocates: What impacts are conflicts of interest having on bidding wars?

http://bit.ly/BidCon

I understand that your office is busy with many worthwhile priorities, but hope our ongoing tweets catch your attention including the fact that homebuyers paid $260,000 per day OVER ASKING price in Cambridge during June 2016, that's $20K more than the median sales price of an existing home nationwide. Does this finding raise any concerns about transparency and conflicts of interest?

CONFLICT? 6 of 7 listings sold $150K+ more over asking price by MegaBroker in @CambMA during June 2016 were IN-HOUSE http://bit.ly/CrwdQBidWars
_________________
Bill Wendel
The Real Estate Cafe
Serving a menu of money-saving services since 1995
97a Garden St.
Cambridge, MA 02138
617-661-4046
realestatecafe@gmail.com
http://realestatecafe.com/blog
http://twitter.com/RealEstateCafe

[bsg61]

Not exactly uplifting:

https://www.bostonglobe.com/business/2016/07/08/house-hunting-greater-boston-good-luck/DgOt0DeBaQBtmFRaOweHfI/story.html#comments