WOULD-BE householders are more and more opting to pay sellers greater than their asking worth in hopes of edging out rival patrons as heightened competitors for few properties on the market fuels bidding wars.
About 52% of United States properties bought in January fetched greater than their checklist worth, up from 40.2% a 12 months earlier, in keeping with information from Redfin, a nationwide actual property brokerage.
It was the best share of properties bought above asking worth ever recorded by Redfin, in information going again to February 2012.
The pattern is obvious in a few of the nation’s costliest housing markets. Some 63.2% of properties bought in Los Angeles in January went for greater than marketed. In Seattle that jumped to 65.9%.
These bidding wars are pushing house prices higher. The median house worth jumped 15.4% in January from a 12 months earlier to US$350,300 (RM1.47mil), in keeping with the National Association of Realtors.
“The housing market was in a frenzy in the beginning of 2022, with buyers competing for a limited supply of homes and sellers reaping the rewards of bid-up prices,” says Taylor Marr, Redfin’s deputy chief economist.
Homebuyers face a tough process navigating the housing market, with the variety of properties on the market at file lows, prices rising sharply and common mortgage charges operating higher than they had been a 12 months in the past, and anticipated to climb additional this 12 months.
The dynamic has made it extra seemingly {that a} house on the market will obtain a number of affords. In January, 70% of affords put in by Redfin brokers on behalf of purchasers had been on properties that acquired bids from a number of would-be patrons, the brokerage mentioned.
And more and more, many patrons are going nicely above a house’s itemizing worth to beat the competitors.
Some 5,897 properties in 50 of the most important US metropolitan areas by inhabitants have bought this 12 months for a minimum of US$100,000 (RM419,300) above their listed worth, greater than double a 12 months in the past, in keeping with a report by Redfin this week. In its evaluation, the agency checked out gross sales information from Jan 1 by way of Feb 15.
California is house to 6 out of the highest 10 metropolitan areas the place properties are promoting for US$100,000 (RM419,300) or extra above the checklist worth. Los Angeles led the best way, with 718 properties promoting for a minimum of a six-figure bump over the asking worth, greater than some other main metropolitan space and up from 273 a 12 months in the past, Redfin mentioned.
Oakland (580), San Jose (490) and Seattle (488) had been the subsequent on that checklist, adopted by Anaheim (365), San Francisco (335), San Diego (323), Boston (158), Denver (125) and New York (109). – AP.
