Redfin: Homes Selling Above Asking Prices Again Amid Low Supply

(Courtesy Redfin)

Redfin, Seattle, reported the average U.S. home is selling over its asking price for the first time since August 2022.

The average sale-to-list price ratio, which shows how close homes sell to their final asking prices, was 100.1% during the four weeks ending July 2.

Unlike the climate during the pandemic, a lack of homes is driving up prices. New listings remain down 25% from last year and the total number of homes for sale has decreased 12% year-over-year.

(Courtesy Redfin)

Active listings over the past month dropped 11.6% from a year earlier, the biggest drop since April 2022.

“Almost every home is getting multiple offers and selling over asking price,” said Portland, Ore., Redfin Agent Jeremy Lucas. “The lack of supply is making it feel almost like 2021 all over again, but higher rates mean bidding wars are happening more in the $500,000 range than the $700,000 range because people can afford less. I’m advising buyers to shop a little under their price range so they can make a strong offer.”

Adding to the pressure, demand is also picking up. Redfin said its Homebuyer Demand Index, which quantifies requests for home tours and other services, is up 4% month-over-month and near its highest level in more than a year.

Touring activity as of July 2 was up 6% from the start of the year, a significant jump from an 11% decrease at the same time last year, per home tour technology company ShowingTime.

For the four-week period ending July 2, the median home sale price was $383,800, down about $1,000 from last year. The median asking price of newly listed homes was $395,725, up 1.1% from this time last year. Asking prices have been increasing for a month, Redfin noted.