Home >> Daily Dose >> Despite Rising Prices, Over Half of Properties Sold at a Discounted Rate in May
Print This Post Print This Post

Despite Rising Prices, Over Half of Properties Sold at a Discounted Rate in May

decreasing-threeAs home prices continue to increase and the market picks up momentum, more properties are being sold at a discounted price. In a recent blog from the National Association of Realtors (NAR), author Scholastica Cororaton, a research economist at NAR found that 63 percent of properties sold at a discount compared to the listing price in May 2015, according to the May 2015 Realtors Confidence Index Survey. The survey also indicated that this price discount usually fell between 1 and 11 percent.

The Confidence Index is a key indicator of housing market strength and is based on a monthly survey sent to over 50,000 real estate practitioners, according to the Realtors. Practitioners are asked about their expectations for home sales, prices, and market conditions.

The survey found that from 2012 thru May 2015, 84 percent of properties that sold after 12 months were sold at a discount. On the other hand, only slightly less than half of properties that were sold within a month were sold at a discount.  Meanwhile, 24 percent of properties that sold within a month sold at a premium compared to only 6 percent for properties that were sold after 12 months.

“Properties that stay on the market for a longer time are more likely to be sold at a discount than properties that stay on the market for a shorter time,” the Realtors said,

Cororaton also noted that staging a home can also increase the price buyers are willing to offer. According to NAR’s 2015 Profile of Home Staging, 32 percent of buyers’ agents believe staged homes increases the dollar value buyers are willing to offer by 1 to 5 percent.

Last week, CoreLogic reported that home prices nationwide, including distressed sales, increased by 6.3 percent in May 2015 compared to this time last year, according to their May 2015 Home Price Index Report (HPI). This will make 39 months of consecutive year-over-year increases in home prices nationally.

"The rate of home price appreciation ticked up in May with gains being fairly widely distributed across the country,” said Anand Nallathambi, president and CEO of CoreLogic. “Importantly, higher home prices over the past couple of years have spurred increases in new single-family construction. Sales of newly built homes during the first five months of 2015 were up 23 percent from a year ago, and as rising values build equity for homeowners, we expect to see more existing homes offered for sale in the coming year.”

About Author: Xhevrije West

Xhevrije West is a writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University.
x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.