Fewer homes sell above listing price as competition softens
As more sellers lower their asking prices and competition eases, the share of homes sold above their listing keeps declining, according to Redfin.
In the four weeks ended Sept. 23, nearly 23% of homes sold above their asking price. It's a year-over-year decrease from 25.5%. In 2018, the share of homes selling above list peaked in June at 29% and steadily declined since then.
Similarly, over a quarter of all home listings dropped their price in a recent four-week-period.
"With home price growth slowing to 4.7% in August, and a record-high share of sellers dropping their prices, the fact that fewer homes are selling above their asking price is another indication that competition is getting less intense than it has been in recent years," Taylor Marr, Redfin's senior economist, said in a press release.
On a city-by-city basis, the most competitive housing markets experienced the most drastic year-over-year declines. Seattle has been one of the hottest places to buy a home in recent years and had 30.3% of its listings sell above list price compared to 50.6% a year ago. That share represents the lowest percentage sold above asking since 2014.
"Inventory pressures are easing in the hottest markets, which is welcome news for homebuyers who are increasingly able to submit an offer without competition and get bids accepted without offering above list price," said Marr.
Austin, Texas, held a nearly identical trend to 2017. Meanwhile, affordable inland metro areas, are having increases in the share of homes sold above listing price. Buffalo, N.Y., went to 42.3% from 38.7% at this time a year ago.