Skip To Content
  • Home
  • Blog
  • Housing market competition is easing — and fewer homes are selling above list price

Housing market competition is easing — and fewer homes are selling above list price

Fewer homes are selling for more than their initial list price — one of a growing number of signs suggesting the white-hot housing market is easing.

About 46.1% of homes sold for more than their initial list price in August 2021, down from 47.2% in July and down even further from the June peak of 50.4% of homes selling above the initial asking price.

While it is still far above August 2020, when 27.4% of homes sold for more than their initial list price, the successive month-to-month drops show a market that is gradually easing, according to Patrick Kearns, director of Storytelling at real estate technology company OJO Labs.

“We are for the first time seeing a return to seasonability to the housing market. And that’s part of a longer trend that is a return to normalcy in the housing market,” Kearns said. “We didn’t really see that over the last year. We had one housing market season that has been really really hot.”


The average amount a home was sold for over asking price was $5,681 Ibn August, down from $8,016 in July. In August 2020, homes were largely selling at a discount to their list price of about $5,405.

Homeowners should know ahead of time what kind of competition they are going to be facing, Kearns said.

“So many people save up thinking my budget is $399,000, but you are probably not going to get a home for $399,000. You need to look for houses below that list price,” Kearns said, adding that five or six thousand dollars is a lot for people already squeezed by high housing prices. “That’s real tangible money to people.”

But not all local markets are equal, according to the data.

The market areas with the highest percentage of houses selling for more than list price include:

  1. San Francisco-Oakland-San Jose: 74.2% of homes sold above list price.
  2. Rochester, New York: 73.8% of homes sold above list price.
  3. Providence, Rhode Island: 65.4% of homes sold above list price.
  4. Boston, Massachusetts: 62.7% of homes sold above list price.
  5. Buffalo, New York: 60.3% of homes sold above list price.
  6. Los Angeles, California: 59.5% of homes sold above list price.
  7. Monterey-Salinas, California: 59.5% of homes sold above list price.
  8. Colorado Springs-Pueblo, Colorado: 59% of homes sold above list price.
  9. San Diego, California: 57.8% of homes sold above list price.
  10. Seattle-Tacoma, Washington: 56.8% of homes sold above list price.

The market areas with the smallest percentage of homes selling for more than list price include:

  1. Norfolk-Portsmouth-Newport News, Virginia: 7% of homes sold above list price.
  2. Panama City, Florida: 19% of homes sold above list price.
  3. Milwaukee, Wisconsin: 21.4% of homes sold above list price.
  4. La Crosse-Eau Claire, Wisconsin: 21.7% of homes sold above list price.
  5. Madison, Wisconsin: 23.7% of homes sold above list price.
  6. Miami, Ft. Lauderdale, Florida: 24.4% of homes sold above list price.
  7. Little Rock-Pine Bluff, Arkansas: 26.5% of homes sold above list price.
  8. Ft. Myers-Naples, Florida: 27% of homes sold above list price.
  9. West Palm Beach-Ft Pierce, Florida: 28.4% of homes sold above list price.
  10. Traverse City-Cadillac, Michigan: 29.1% of homes sold above list price.

The fresh report comes amid other signs that the Covid-19-fueled housing market — with homes selling well above asking price — may have reached its peak, at least according to recent data.

That doesn’t mean housing prices are going to come down in the near future, and in many parts of the country the housing market continues to remain red hot, but some national indicators are showing early signs of balancing, according to Redfin Economist Taylor Marr.

Trackback from your site.

Leave a Reply

*
*