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Nearly 30% of Homes Selling Above the List Price

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The number of homes that were sold at or above the list price fell to 29.4% in December 2019—the same level of the average since 2000—CoreLogic reports. 

CoreLogic reports that San Francisco had 56% of the homes sold for at least the list price. Los Angeles had 44% of homes sold for at least the list price and Washington D.C. was close behind at 42%. 

West Palm Beach, Florida, had the lowest share of homes selling at or above the list price at 14%. 

In a study of more than 200 metros in December 2019, San Francisco, where supply has been tight in recent months, homebuyers paid 1.8% more than the average asking price. 

Redfin reported that the San Francisco Bay Area to be the most competitive city in the nation in January 2020. It was estimated that 90% of homes had multiples offers despite San Francisco has a median-home price of more than $1 million. 

“After missing out on one home due to a bidding war, my clients were much more aggressive on their next offer,” said Redfin San Jose agent Jennifer Tollenaar. “In order to beat 24 other offers, they put 50% down, wrote a great letter to the sellers, and removed all contingencies. This was on a home with a purchase price of over $1.7 million.”

CoreLogic found that Miami had the highest average discount on home prices, as homebuyers are reporting discounts of 7.9% in December. 

Redfin also reported that U.S. home-sale prices rose 6.7% annually in January to a median price of $306,400. Prices were also up 0.7% from December 2019.

The metro areas that experienced the largest jumps in price points during January included the most affordable enclaves. Specifically, out of the 20 metro areas that experienced the biggest year-over-year price spikes, 18 of these boasted home prices that fell below the national average. 

Such metro areas included Memphis, Tennessee, where the average home price was $182,900, reflecting a spike of 17.1%, as well as Dayton, Ohio, which averaged a price of $132,000 that reflected a spike of 14.8%, and Rochester, New York, which saw an average home price of $148,500, reflecting a rise in the price of 13.3%.

However, with the boom in home prices across the nation also came a blow to the market, as low inventory in January began causing buyers headaches. 

Redfin revealed the number of available homes for the month fell 11.4% year-over-year—the biggest decline since March 2013 and the sixth straight month of falling supply. 

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
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