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Aly J. Yale
The Mortgage Reports contributor

Homes selling above listing price drop

Home prices might not be declining, but there’s still good news for homebuyers. According to new data, the number of homes being sold above listing price just fell to a three-year low.

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Above-asking home sales decline

A new analysis from Zillow shows that the number of homes selling above listing price dropped to 19.9% last year. It was down from 21.5% in 2018 and the lowest share seen since 2016.

Before 2019, there had been four consecutive years of increases in the above-listing price share of home sales.

That’s not the only good news in Zillow’s data, though. Of the homes that did sell above list price last year, the premiums paid by buyers shrank. In 2018, buyers paid about $5,500 more on homes that sold above listing price. In 2019? It was $5,100.

Treh Manhertz, an economic data analyst for Zillow, calls the data “a reflection of cooling market dynamics and subsequent shifts in pricing and offer strategies in response.”

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San Fran buyers suffer most; Miami’s win out

San Francisco claimed the largest share of homes being sold above listing price at 48.6%. California’s San Jose came in second (38.8%), with Boston, Minneapolis, and Seattle rounding out the top five.

In San Jose, buyers paid about $41,000 over asking price, while those in San Francisco paid $37,500. Both numbers have dropped since 2018, when buyers paid $101,000 and $50,000 more, respectively.

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Miami buyers saw the fewest above-listing sales at just 8.9%. Las Vegas (12.6%) and Tampa (13.3%) also had small shares.

Verify your new rate (Jul 9th, 2020)

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Verify your new rate (Jul 9th, 2020)