But they are still asking… and nearly one-quarter of homes sold are above asking price.
This has been one of the most unexpected real estate boom markets in the last quarter of a century. Prior to this, all the boom markets had plenty of inventory and at times low interest rates but there was always a house available to buy.
In this case, inventory shortages have dramatically reduced the options available to motivated buyers.
Redfin reported that the number of homes sold above asking price, based upon its recent report, fell to only 23%. The typical suspects in this case are Seattle, Las Vegas, Denver and Portland. But the 22.9% figure of homes selling above asking price is considerably less than those that sold during the month of June 2018, where 29% of all homes sold above asking price.
According to the report, they see the slowing home price growth, which came in at just 4.7% in August, as a reflection of the cooler market demand.
From an outside perspective this is actually bringing some sobriety into this marketplace, which was initially governed by historic inventory shortages and low interest rates.
Some of the record numbers for homes selling above asking price were reported in the Seattle region, where in 2017 50% of homes were selling above asking price. Now, just 30.3% of homes were sold above asking price.
According to the report, affordable regions such as Buffalo, Indianapolis and Las Vegas are showing that competition continues to make these areas where properties will sell above asking price.
With August results nationwide, it appears that inventory is increasing and sales are maintaining a healthy balance without double-digit jumps in the number of sales year-over-year.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.