Nearly one in three homes in California sold for above their asking price in August – welcomed news for sellers but to the detriment of buyers who are engaging in fierce bidding wars amid limited inventory. According to the California Association of Realtors' August Market Pulse Survey, 29 percent of homes sold for more than the initial asking price – up from 27 percent a year ago.
The premium averaged 10 percent above the list price for resale homes a 2.2 percent climb since July.
The majority of homes on the market are currently receiving multiple offers prior to selling. A limited number of homes on the market is causing increased competition amongst buyers as sellers adjust their asking price to reflect the high demand.
Thirty percent of homes in August sold at their asking price and only 12 percent sold at a discount.
Meanwhile, mortgage rates remain near all-time lows with conforming no-point 30-year fixed rates averaging 3.375 percent while the 15-year rate is near 2.75 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.