SEATTLE, Feb. 1, 2019 /PRNewswire/ -- The share of
homes sold above asking price declined each month in the second half of 2018 – and December saw the biggest
month-over-month drop since at least 2012 – another sign of the slowing housing market.
Nineteen percent of home sales in the U.S. went for above asking in December, down from 21 percent in November and a peak of
24 percent in May. While lower than the highs of this spring, the level remains above the 17-percent range from 2014.
This downward trend in December was widespread: Eight of the 10 largest markets in the U.S. experienced a drop from November
levels – Philadelphia and Washington, D.C., were the
exceptions. Among the largest 35 markets, 27 saw a downtick in the share of homes that sold above list. The largest drop was in
Indianapolis, where homes selling above list fell nearly 13 percentage points, followed by
San Francisco, down 5.4 percentage points. Notably, San
Francisco still saw the second-highest share of homes sell above list price in December (42.6 percent) among top-35
markets, exceeded only by San Antonio (44.3 percent).
Despite the slowdown during the back half of the year, the annual share of homes sold above list price still trended upward
for the fourth consecutive year, though the pace is slowing. Nationally, 23.5 percent of homes sold above list price in 2018
compared to 22.7 percent in 2017. The median amount above asking that sellers realized fell from $7,000 to $6,830.
"Last year marked an inflection point in the housing market. The first half of 2018 looked a lot like the previous three years
with sellers firmly in control of the market and buyers outbidding each other for scarce inventory, pushing up prices," said
Zillow® senior economist Aaron Terrazas. "But something shifted mid-summer. Sellers sitting on the
sidelines joined in, increasing inventory. The balance of power began to swing marginally back toward buyers – particularly in
higher-priced communities – during the second half of the year, an unfamiliar chill after several years of frenzied activity.
With mortgage rates now back down, early data from the first month of 2019 suggest that it is still premature to call it a
buyer's market. But more than any time in recent memory, it is important for sellers to be thoughtful in their listing strategy.
Buyers are out there, but they're no longer fighting each other tooth and nail to get in the door."
The San Francisco Bay Area and Silicon Valley remained the hottest housing region in the
country in 2018. Among top-35 markets, San Jose, Calif., (64.1 percent) and San Francisco (61.6 percent) had the highest share of home sales above asking price despite a steady
slowdown since the start of last year. These two markets combine to fill the top-10 lists for share of homes sold above asking
and median price above asking since Zillow began tracking this data in 2012. This includes a record $101,000 median price above asking in San Jose in 2018, shattering the
previous record of $70,000 set in San Jose in 2017.
Miami (9.7 percent of homes sold above asking), Tampa Bay
(14.5 percent) and Pittsburgh (15.2 percent) were 2018's coolest top-35 markets. Nearly 84
percent of homes in Miami sold for below their asking price last year, which was the highest
share among top-35 markets since 2014.
|
Metro
|
Share of
Sales
Above
List Price -
Nov. 2018
|
Share of
Sales
Above List
Price -
Dec. 2018
|
Month-
over-Month
Change
(percentage
points)
|
Share of
Sales
Above
List Price
- 2017
|
Share of
Sales
Above List
Price -
2018
|
Year-over-
Year Change
(percentage
points)
|
|
United States
|
21.0%
|
19.4%
|
-1.6%
|
22.7%
|
23.5%
|
0.8%
|
|
New York, NY
|
20.8%
|
20.0%
|
-0.8%
|
20.1%
|
21.5%
|
1.4%
|
|
Los Angeles-Long Beach-Anaheim, CA
|
28.1%
|
26.3%
|
-1.8%
|
35.1%
|
34.7%
|
-0.4%
|
|
Chicago, IL
|
16.5%
|
14.5%
|
-2.0%
|
16.4%
|
17.8%
|
1.4%
|
|
Dallas-Fort Worth, TX
|
37.9%
|
36.0%
|
-1.9%
|
38.2%
|
37.7%
|
-0.5%
|
|
Philadelphia, PA
|
17.6%
|
18.8%
|
1.2%
|
16.0%
|
18.6%
|
2.6%
|
|
Houston, TX
|
33.8%
|
32.8%
|
-1.0%
|
30.4%
|
31.5%
|
1.1%
|
|
Washington, DC
|
22.9%
|
24.7%
|
1.8%
|
24.1%
|
26.2%
|
2.1%
|
|
Miami-Fort Lauderdale, FL
|
9.2%
|
8.0%
|
-1.2%
|
11.0%
|
9.7%
|
-1.3%
|
|
Atlanta, GA
|
20.1%
|
20.0%
|
-0.1%
|
19.5%
|
22.8%
|
3.3%
|
|
Boston, MA
|
36.1%
|
33.8%
|
-2.3%
|
39.4%
|
40.5%
|
1.1%
|
|
San Francisco, CA
|
48.0%
|
42.6%
|
-5.4%
|
62.5%
|
61.6%
|
-0.9%
|
|
Detroit, MI
|
21.8%
|
16.8%
|
-5.0%
|
22.5%
|
23.5%
|
1.0%
|
|
Riverside, CA
|
22.1%
|
20.5%
|
-1.6%
|
26.4%
|
25.5%
|
-0.9%
|
|
Phoenix, AZ
|
14.9%
|
16.3%
|
1.4%
|
14.9%
|
16.6%
|
1.7%
|
|
Seattle, WA
|
27.1%
|
24.6%
|
-2.5%
|
48.7%
|
42.7%
|
-6.0%
|
|
Minneapolis-St Paul, MN
|
30.0%
|
26.3%
|
-3.7%
|
33.3%
|
36.8%
|
3.5%
|
|
San Diego, CA
|
17.4%
|
16.4%
|
-1.0%
|
29.9%
|
25.7%
|
-4.2%
|
|
St. Louis, MO
|
27.3%
|
24.3%
|
-3.0%
|
19.7%
|
25.3%
|
5.6%
|
|
Tampa, FL
|
14.3%
|
12.1%
|
-2.2%
|
15.0%
|
14.5%
|
-0.5%
|
|
Baltimore, MD
|
18.8%
|
19.5%
|
0.7%
|
18.2%
|
20.5%
|
2.3%
|
|
Denver, CO
|
23.0%
|
20.0%
|
-3.0%
|
36.1%
|
34.5%
|
-1.5%
|
|
Pittsburgh, PA
|
14.7%
|
15.0%
|
0.3%
|
12.8%
|
15.2%
|
2.4%
|
|
Portland, OR
|
26.6%
|
24.5%
|
-2.1%
|
36.7%
|
31.7%
|
-5.0%
|
|
Charlotte, NC
|
22.3%
|
18.6%
|
-3.7%
|
23.8%
|
23.5%
|
-0.3%
|
|
Sacramento, CA
|
24.6%
|
24.0%
|
-0.6%
|
37.5%
|
33.2%
|
-4.3%
|
|
San Antonio, TX
|
43.1%
|
44.3%
|
1.2%
|
39.5%
|
41.0%
|
1.5%
|
|
Orlando, FL
|
14.3%
|
12.9%
|
-1.4%
|
16.0%
|
15.8%
|
-0.2%
|
|
Cincinnati, OH
|
14.5%
|
14.3%
|
-0.2%
|
16.0%
|
18.9%
|
2.9%
|
|
Cleveland, OH
|
15.0%
|
16.5%
|
1.5%
|
16.7%
|
18.3%
|
1.6%
|
|
Kansas City, MO
|
40.5%
|
42.2%
|
1.7%
|
39.1%
|
42.4%
|
3.3%
|
|
Las Vegas, NV
|
18.6%
|
16.5%
|
-2.1%
|
24.7%
|
26.5%
|
1.8%
|
|
Columbus, OH
|
24.0%
|
22.2%
|
-1.8%
|
30.4%
|
32.5%
|
2.1%
|
|
Indianapolis, IN
|
32.7%
|
19.9%
|
-12.8%
|
31.7%
|
35.3%
|
3.6%
|
|
San Jose, CA
|
39.1%
|
36.3%
|
-2.8%
|
67.6%
|
64.1%
|
-3.5%
|
|
Austin, TX
|
33.5%
|
31.4%
|
-2.1%
|
32.4%
|
32.4%
|
0.0%
|
Zillow
Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge
around the place they call home, and connecting them with great real estate professionals. In addition, Zillow operates an
industry-leading economics and analytics bureau led by Zillow Group's Chief Economist Dr. Svenja
Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more
than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which
asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the
Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z
and ZG), and headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
[i] From 2012-2017, the November to December changes were as follows (in percentage points): +0.75%, -0.14%, +0.01%, +0.44%,
-0.25% and -0.15%.
[ii] The median premium on homes sold above their list price decreased from 3.08% in 2017 to 3.02% in 2018.
View original content:http://www.prnewswire.com/news-releases/share-of-homes-sold-above-asking-price-hits-two-year-low-300788003.html
SOURCE Zillow