The share of homes sold above their listing price continues to rise, according to new figures from Zillow.
Analysis from Zillow found that a 22.4% share of homes purchased in September sold for more than their initial list price – up from 20.2% in August 2020 and “well above the roughly 15% of homes that did so during September 2018 and 2019.”
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Zillow also found that that homes were typically sold only 12 days after being listed in September, which is a full 17 days faster than the same time last year.
“Buyer demand has been intense and persistent since the market picked up speed in April after a dramatic slowdown in the early days of the coronavirus pandemic,” Zillow said in a statement. “Potential buyers may be feeling urgency to lock in low mortgage rates now, especially if they sense prices will slip further from reach in coming years. Many others may be taking advantage of new freedom to telecommute from an area where they can more easily afford a home.”
“The housing market is taking us all back to Economics 101 and teaching lessons about supply and demand," said Chris Glynn, senior economist at Zillow. “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.”
“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.”