The share of homes selling at or above list price has returned to levels comparable with the early 2000's, according to a new analysis from CoreLogic, a real estate data firm.
Annual home price growth began to slow in the third quarter of 2018. As such, the share of home buyers able to negotiate a better price began to rise.
In the second quarter of 2018, the share of homes selling at or above list price peaked at 43% of total sales, which is nearly triple the level during the housing crisis in January 2008.
As of June, the share of homes that were sold at or above list price dropped to 39.2%. That is still 10 percentage points higher than the average since 2000, CoreLogic researchers note.
San Francisco had the highest share of homes that sold above list price. Eighty-three percent of homes there in June sold for at least the list price. Seattle and Minneapolis followed at 74% and 62%, respectively. On the other hand, of the 20 metros tracked, Miami had the lowest share at 19% of homes selling at or above the list price in June.
“Supply levels play a part in the final sales price,” CoreLogic researchers note. For example, in San Francisco, there was a 1.7 month supply of homes in June, the lowest in the nation and about half of the national level of 3.3 months. However, in Miami, there was a 7.7 month supply in June.
Source: “Share of Homes Selling at or Above List Price 10 Percent Point Above Long-Term Average,” CoreLogic Insights blog (Aug. 27, 2019)