A decade removed from the Great Recession, the housing market in the U.S. appears to be normalizing. One indicator of this is that the share of homes selling above their original list price is dropping. Bidding wars over the limited number of homes for sale caused prices to soar well-above list prices for much of the last several years. But a new report from CoreLogic shows that the share of homes selling at or above list price has returned to early 2000 levels.
The peak was reached in Q2 2018 when 43 percent of all home sold in the U.S. went for more than asking. This is triple the level during the peak of the recession in early 2008. While this has dropped to 39.2 percent nationally as of this summer, San Diego stands apart.
The greater San Diego market remained just below the all-time high with 41 percent of homes selling at or above the list price. The region joins other hot markets like San Francisco (83 percent) that have bucked the national trend.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.