Buyers Are Bidding Up Prices

More Properties Were Sold At or Above List Price in January 2018, Tight 

inventories mixed with high demand are pressing prices higher in many markets, As such, a growing number of real estate pros say that their home sellers are seeing their properties sell beyond the asking price.

Thirty-four percent of properties that closed in January sold at or above the list price, according to the January 2018 REALTORS® Confidence Index Survey, a survey of real estate professionals about their latest transactions. That is higher than a year ago when 31 percent of properties sold at or above the list price.

Of the properties that sold at a premium price, 86 percent sold at 101 to 110 percent of the list price, according to the report.

Highlights

• Properties were typically on the market for 42 days (50 days in January 2017).
• Eighty-nine percent of respondents reported that home prices remained constant or rose in January 2018 compared to levels one year ago (88 percent in January 2017).
• First-time buyers accounted for 29 percent of sales (33 percent in January 2017).
• REALTORS® report “low inventory” and “interest rate” as the major issues affecting transactions in January 2018.

NAR’s report also showed that 75 percent of contracts in January settled on time, up from 67 percent a year ago. About 74 percent of closed sales contained contract contingencies. The most common contingencies related to home inspections (58 percent), getting an acceptable appraisal (44 percent), and obtaining financing (43 percent).

Mortgage Rates Just Got Higher Again

Source:National Association of REALTORS® Economists’ Outlook blog (Feb. 28, 2018)