Understanding Price is imperative both form the Seller’s and Buyer’s perspectives.
For the seller, pricing too high can be disastrous. Buyers will focus their attention on lower-priced listings first. So can pricing so low that buyers wonder what is wrong with the property.
Much the current Silicon Valley Market is deliberately priced low to spark interest, often resulting in multiple offers driving the price up as evidenced by the ratios over 100%.
Back in May we observed that price escalation by overbidding occurred, on average, at prices less than $1,400,000, suggesting the higher price bands are actually over-priced when listed. However, this histogram shows that while the over-all magnitude of overbidding has declined, the price ranges over-which it occurs have widened to include up to $1,800,000. This may indicate better pricing in those higher price bands, or that the market demand has widened.