SEATTLE, Feb. 6, 2020 /PRNewswire/ -- As the housing
market returned to normal after a frenzied couple of years marked
by intense bidding wars in many markets, the smallest share of
homes sold for above their list price last year than in any year
since 2016.
Home value growth slowed throughout 2019 to a rate more in line
with historic norms than the elevated levels of the past few years.
About a fifth (19.9%) of U.S. homes sold for more than their asking
price in 2019, according to a new Zillow® analysis, down from 21.5%
the previous year. This drop breaks a streak of four consecutive
years in which a greater share of homes sold above list price as
the market picked up steam.
But inventory is incredibly tight and this scarcity is a
main driver of bidding wars that drive up sale prices, so we could
be headed for a reversal in 2020. That's good news for prospective
sellers, but means buyers will need to be on the ball this
shopping season. Monthly trends in 2019 show that the share of
homes sold above list was greatest in the fall months -- right as
inventory was approaching its low point -- which is typically a
slower time of year for the housing market after home shopping
season wraps up.
"The housing market took a breather in 2019, after years of
red-hot sellers' markets," said Zillow Economist Jeff Tucker. "Many sellers were caught off-guard
by the changing conditions, and ended up accepting offers at or
below list prices that were dreamed up during the height of the
frenzy. But the cloudy outlook for sellers began to clear late in
the year after inventory buildups in several cities were whittled
back down to record lows, suggesting a hot spring sellers' market
is around the corner. Sellers hoping to cash in and upgrade should
proceed with care, however, as the same tight conditions that may
drive up their sale price will be facing them on the other side
when they look to buy their next home."
Despite seeing recent year-over-year drops in home value,
San Francisco (48.6% of homes sold
above list) and San Jose (38.8%)
top the list of metros with the greatest share of homes sold above
list among the top 35 -- a sign of just how competitive the
Bay Area remains even after
cooling significantly in 2019. Boston (34.7%), Minneapolis-St. Paul (34.3%) and Seattle (31.2%) have the next-highest
shares.
The coolest top-35 markets were Miami (8.9% of homes sold above asking),
Las Vegas (12.6%) and Tampa (13.3%). Las
Vegas fell from 26.8% a year ago, which was the 12th-highest
share in the country. Only San
Jose's share decreased by more, from 63.6% to
38.8%.
The median amount above asking that sellers realized was
$5,100, down from $5,500 in 2018 and the lowest since at least
2011. San Jose ($41,000 above asking) and San Francisco ($37,500) lead the country in this measure as
well, a product of both intense competition among buyers and the
high prices of real estate there making these figures relatively in
line. Still, these figures are much lower than a year ago when
San Jose homes typically sold for
$101,000 above asking and those in
San Francisco sold for
$50,000 above asking.
Metro
|
Share of Sales
Above List Price
- 2019
|
Share of Sales
Above List Price
- 2018
|
Median Amount
Above List Price -
2019
|
Median Amount
Above List Price -
2018
|
United
States
|
19.9%
|
21.5%
|
$5,100
|
$5,500
|
New York,
NY
|
19.3%
|
21.7%
|
$11,000
|
$11,000
|
Los Angeles-Long
Beach-Anaheim, CA
|
28.4%
|
34.8%
|
$12,000
|
$15,000
|
Chicago,
IL
|
15.8%
|
17.4%
|
$5,000
|
$5,000
|
Dallas-Fort
Worth,
TX
|
17.7%
|
24.2%
|
$5,000
|
$5,100
|
Philadelphia,
PA
|
19.1%
|
18.3%
|
$5,100
|
$5,100
|
Houston,
TX
|
13.6%
|
14.3%
|
$5,000
|
$5,000
|
Washington,
DC
|
28.5%
|
25.8%
|
$7,000
|
$6,100
|
Miami-Fort
Lauderdale, FL
|
8.9%
|
10.1%
|
$6,500
|
$7,100
|
Atlanta,
GA
|
19.8%
|
23.1%
|
$5,000
|
$5,000
|
Boston, MA
|
34.7%
|
40.0%
|
$11,100
|
$15,100
|
San Francisco,
CA
|
48.6%
|
61.1%
|
$37,500
|
$50,000
|
Detroit,
MI
|
19.3%
|
23.5%
|
$4,500
|
$5,000
|
Riverside,
CA
|
22.9%
|
25.7%
|
$5,000
|
$5,100
|
Phoenix,
AZ
|
17.1%
|
16.9%
|
$4,100
|
$4,100
|
Seattle,
WA
|
31.2%
|
42.5%
|
$10,050
|
$19,000
|
Minneapolis-St
Paul,
MN
|
34.3%
|
36.7%
|
$6,500
|
$7,000
|
San Diego,
CA
|
22.6%
|
25.1%
|
$10,000
|
$10,000
|
St. Louis,
MO
|
21.8%
|
20.2%
|
$5,000
|
$5,000
|
Tampa, FL
|
13.3%
|
14.5%
|
$4,500
|
$4,500
|
Baltimore,
MD
|
21.7%
|
21.3%
|
$5,100
|
$5,100
|
Denver, CO
|
23.8%
|
34.3%
|
$6,100
|
$10,000
|
Pittsburgh,
PA
|
17.0%
|
15.2%
|
$5,000
|
$5,000
|
Portland,
OR
|
26.9%
|
31.7%
|
$7,300
|
$9,100
|
Charlotte,
NC
|
21.3%
|
24.3%
|
$4,100
|
$4,500
|
Sacramento,
CA
|
30.4%
|
33.3%
|
$6,000
|
$7,000
|
San Antonio,
TX
|
17.8%
|
19.5%
|
$3,560
|
$4,000
|
Orlando,
FL
|
13.3%
|
15.5%
|
$4,500
|
$5,000
|
Cincinnati,
OH
|
18.3%
|
18.4%
|
$4,100
|
$4,000
|
Cleveland,
OH
|
19.1%
|
18.3%
|
$4,100
|
$4,100
|
Kansas City,
MO
|
26.9%
|
29.5%
|
$5,000
|
$5,000
|
Las Vegas,
NV
|
12.6%
|
26.2%
|
$4,260
|
$5,000
|
Columbus,
OH
|
29.5%
|
31.9%
|
$5,100
|
$5,100
|
Indianapolis,
IN
|
19.4%
|
21.4%
|
$4,000
|
$4,100
|
San Jose,
CA
|
38.8%
|
63.6%
|
$41,000
|
$101,000
|
Austin, TX
|
21.5%
|
19.8%
|
$6,000
|
$6,000
|
About Zillow
Zillow® is transforming how people buy,
sell, rent and finance homes by creating seamless real estate
transactions for today's on-demand consumer. Zillow is the leading
real estate and rental marketplace and a trusted source for data,
inspiration and knowledge among both consumers and real estate
professionals.
Zillow's proprietary data, technology and industry partnerships
put Zillow at nearly every major point of the home shopping
experience, helping consumers search for and get into their new
home faster. Zillow now offers a fully integrated home shopping
experience that includes access to for sale and rental listings,
Zillow Offers®, which provides a new, hassle-free way to buy and
sell eligible homes directly through Zillow; and Zillow Home Loans,
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mortgage pre-approvals and financing. Zillow Premier Agent
instantly connects buyers and sellers with its network of real
estate professionals to help guide them through the home shopping
process. For renters, Zillow's innovations are streamlining the way
people search, tour, apply and pay rent for leased
properties.
In addition to Zillow.com, Zillow operates the most popular
suite of mobile real estate apps, with more than two dozen apps
across all major platforms. Launched in 2006, Zillow is owned and
operated by Zillow Group, Inc. (NASDAQ:Z and ZG) and headquartered
in Seattle.
Zillow and Zillow Offers are registered trademarks of Zillow,
Inc.
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SOURCE Zillow