Date: January 20, 2018
posted by Jaleesa / Comments: No Comments / Tags: There is no tags
Buyers paid more than the asking price in nearly one quarter (24 percent) of U.S. home sales in 2017, netting sellers an additional $7,000 each.
Five years ago, 17.8 percent of final sale prices were higher than the asking price, according to a new Zillow® analysis. Looking at big cities, the amount of sales over asking in Los Angeles and San Diego was 37% and 33% respectively, averaging sellers and additional $12,000.
Over the past year the American housing market (and this definitely includes California) has been struck by the combination of strong demand and limited supply. Young adult renters are increasingly feeling confident enough to buy, but they are entering a market with very few homes for sale, as inventory has been steadily declining for almost three years. Low interest rates have buoyed buyers’ budgets, raising the limits on what they can afford –and may be willing– to pay.
Homes sell quickly in such a competitive market, with the typical U.S. home selling in 80 days, including the time it takes to close on the sale. Fierce competition means buyers may not win a home on their first offer. The typical buyer spends more than four months home shopping and has to make multiple offers before an offer is accepted, according to the 2017 Zillow Group Consumer Housing Trends Report.
“Low interest rates and strong labor markets with high-paying jobs have allowed home buyers in some of the country’s priciest housing markets to bid well over asking price,” said Zillow Senior Economist Aaron Terrazas. “In the booming tech capitals of the California Bay Area and Pacific Northwest, paying above list price is now the norm. In the face of historically tight inventory, buyers have had to be more aggressive in their offers. We don’t expect this inventory crunch to ease meaningfully in 2018, meaning buyers will be facing many of the same struggles this year.”
Buyers should be pro-active when it comes to bidding on their dream home. If you are not willing to lose the house you are bidding on, take a look at this blog post for some tips on how to get ahead of the curve.
Sellers, price your property wisely and generate lots of interest in your property as well as multiple offers. Don’t let your property sit on the market and you will get the best price for your house.
About Jaleesa Peluso, Orange County Realtor & Certified International Property Specialist
Between the Orange County Canyons to the Coast, Jaleesa and her team successfully connect buyers and sellers & landlords and tenants. Thinking of leasing, buying or selling your home? Call us now at (949)395-0960!