Are Homes Still Selling Above List Price?
In a competitive market, it isn't uncommon for a home to attract multiple buyers. When this happens, buyers have to make their offer more attractive to the home's seller in order to have it chosen over other buyers' offers.
Typically, that means more money. This is the primary reason for recent home-price increases. For the past few years, there haven't been enough homes for sale to satisfy buyer demand, which has caused more competition, bidding wars, and a higher percentage of homes selling above their list price.
But, like any market, the housing market has its ups-and-downs. So what should winter buyers expect when out looking at homes? Well, according to one recent analysis of December home sales, there's still a large percentage of homes selling above list price – though it's fallen from its summer peak.
The numbers show 43 percent of homes sold above list price during the final month of 2021. That's down 14 percent from its peak last June, but 9 percent higher than one year earlier.
That means, winter buyers will likely find the market less competitive than it was last summer, but still competitive enough that they should prepare for the possibility that they'll have to outbid other buyers.* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.