The share of homes sold above list continues to rise, according to a new analysis by Zillow.
In September, 22.4 percent of homes purchased in the U.S. sold for more than their initial list price, up from 20.2 percent in August and the 15 percent of homes that did so during September 2018 and 2019, Zillow’s analysis found.
In both 2018 and 2019, the share of homes selling above list price peaked in July before steadily declining as the market cooled in the fall and winter months. This year, the share has increased each month.
“The housing market is taking us all back to Economics 101 and teaching lessons about supply and demand,” Zillow Senior Economist Chris Glynn said in a release. “A persistent interest in buying and moving is creating an imbalance that is driving prices higher than we typically see at this time of year.
“In many cases, buyers in this market should be realistic about the chance of bidding wars and leave themselves financial flexibility by looking at homes listed for less than their maximum price point,” he said. “With tight inventory, low interest rates, and robust demand from households re-evaluating their housing needs, a strong, competitive market with many transactions is likely here to stay into 2021.”
According to Zillow, homes priced between $192,001 and $264,000 sold above list in 28.2 percent of September sales.
Zillow said homes priced in the most-expensive tier – above $487,000 – sold above list 15.7 percent of the time, the lowest of the five price bands tracked in Zillow's study.
During September, the share of homes sold above list more than doubled in Phoenix, San Diego, Denver, Virginia Beach and Riverside, Calif.