An increasing number of homebuyers are paying above asking value in America’s largest metros.
Sturdy demand and low provide means consumers are forking over as much as a whole lot of hundreds of {dollars} above asking value to shut offers, in line with Inman, citing a Redfin research.
Costs have been highest in Oakland, the place the standard dwelling bought for almost 11 % over the itemizing within the first half of this 12 months. Simply over 5,200 houses bought for not less than $100,000 above asking throughout that interval, in comparison with simply 777 within the first half of 2020. Pandemic lockdowns final spring jammed the brakes on homebuying, which led to greater reductions on houses that remained in the marketplace.
Austin, Texas; Denver, San Francisco, San Jose and Seattle all noticed pricing of 5 to 9 % above asking within the first six months of the 12 months. Premiums have been extra modest final 12 months in San Francisco, San Jose, and Seattle; it was extra widespread for houses to promote beneath asking in Austin and Denver.
Austin has seen an inflow of individuals working in tech sectors over the past couple of years, which has contributed to rising dwelling costs.
“I’ve by no means seen something like this housing market,” Redfin agent Scott Petrich mentioned. He added that “most of those individuals have the cash to compete with different consumers and drive up costs.”
[Inman] — Dennis Lynch