The share of U.S. homes that sold for more than their list price in 2019 fell to 19.9 percent, down nearly 2 percent to the lowest level since 2016, according to an analysis by Zillow.
Zillow’s analysis found that the California Bay Area remains the most competitive housing market in the country, and homes that sold above list last year nationwide typically brought in $5,100 more than the asking price, down from $5,500 the year before.
“The housing market took a breather in 2019, after years of red-hot sellers’ markets. Many sellers were caught off-guard by the changing conditions, and ended up accepting offers at or below list prices that were dreamed up during the height of the frenzy,” Zillow Economist Jeff Tucker said in a release.
“But the cloudy outlook for sellers began to clear late in the year after inventory buildups in several cities were whittled back down to record lows, suggesting a hot spring sellers’ market is around the corner,” Tucker said. “Sellers hoping to cash in and upgrade should proceed with care, however, as the same tight conditions that may drive up their sale price will be facing them on the other side when they look to buy their next home.”
According to the analysis, the metropolitan areas with the greatest share of homes sold above list in 2019 were San Francisco (48.6 percent); San Jose, Calif. (38.8 percent); Boston (34.7 percent); Minneapolis-St. Paul (34.3 percent); and Seattle (31.2 percent). The metropolitan areas with the lowest percentage of homes selling above list in 2019 were Miami (8.9 percent); Las Vegas (12.6 percent); and Tampa (13.3 percent).
Zillow said San Jose ($41,000 above asking) and San Francisco ($37,500) lead the country in 2019 in the median amount above asking that sellers received. In 2018 San Jose homes typically sold for $101,000 above asking and San Francisco homes sold for $50,000 above asking.