Here’s one more sign that the housing market in the United States is hot and may be overheated: Nearly one-quarter (24 percent) of all home sales in 2017 were above the asking price.
Research by Zillow, an online marketplace, found, on average, homes sold for $7,000 more than the sellers’ asking price. By comparison, five years ago, in 2012, the share of U.S. home sales above the listed price was 17.8 percent.
Limited inventory and pent-up demand are causing bidding wars among buyers in many markets, with the average sales price 3.1 percent above the initial listed price.
The West Coast cities of San Jose, San Francisco and Seattle, where tech jobs with good salaries are plentiful and houses are not, were among the cities with the most houses selling above asking price. More than half of sellers in San Jose (68.5 percent), San Francisco (64.5 percent), Salt Lake City (55.4 percent), Seattle (52.4 percent) and Provo, Utah (51.1 percent) sold their homes for more than the listed price. Sellers gained an average of $20,000 over their initial asking price in those five markets.
Sellers in San Jose garnered the most profits, with an average of an extra $62,000 above their listed price.
The Washington region tracked closely with the national trend: 25.4 percent of homes sold in the area in 2017 were above the asking price. The median amount paid over the listing prices was 1.9 percent or $6,100. In 2012, 18.8 percent of homes in the D.C. area sold for more than the asking price.
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