In just the latest sign that the housing market may be cooling slightly, CoreLogic has released new data that shows the volume of bidding wars taking place has returned to “normal levels”. The number of homes that are selling above their list price, driven by multiple prospective buyers offering competing bids, has dropped a similar rate as the historic norms seen in 2000 and 2001.
Thirty-one percent of homes that sold in March went above their asking price. This is down from the peak of 40 percent reached in the second quarter of 2018.
Home prices are reaching the upper limits of buyers’ budgets, preventing them from upping their offers. In San Diego, 28 percent of homes sold above the original list price while 30 percent sold below the list price.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 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.