In the four weeks ending on September 23, 22.9 percent of homes sold for more than their asking price, across the metros Redfin tracks. Over one-in-five seems like a good deal, however, it signifies a 2.6 percentage point decrease when compared with the same period a year when 25.5 percentage of homes sold above their listing price. The share has since been declining since its peak of 29 percent in June and has not been this low because 2016.
In Seattle, the Conversation of Homes Selling Bulk List Fell to 30 Percent this Month from 50% a Year Ago
The article The Conversation of Homes Selling Above List Price Just Dropped Below 2016 Levels appeared on Redfin Real-Time.
- The change is most stark in the markets which have been the most competitive. In Seattle, Denver, Portland and the Bay Area, the share of homes that sold above list is falling rapidly.
- For example, at Seattle, 30.3% of homes sold above list in the four months ending September 23, down from 50.6% during the same period this past year. The talk of homes selling above list hasn’t been this low in Seattle since 2014.
- Contrast Seattle into a metro like Austin, where the 2018 trend line tracks fairly closely with the 2017 trend line. In Austin, competition has been fairly consistent over the last couple of years.
- Although many metro areas have been after the national curve, it’s worth noting that some metros are bucking the trend. Inventory has been declining steeply in those metros and as a result, the share of houses selling above list price continues to be greater than it had been last year.
What’s Happening About the Nation
“With home cost increase slowing to 4.7% in August, and a record-high share of vendors dropping their costs , the simple fact that fewer homes are selling above their asking price is just another sign that competition is getting less intense than it has been in the last few decades,” said Redfin older economist Taylor Marr. “paychecks are easing from the latest markets, which will be welcome information for homebuyers that are unable to publish an offer without contest and receive bids approved without offering over list price.”