More Than a Quarter of Dallas-Area Homebuyers Pay More Than Asking Price
Almost 40% of U.S. homebuyers pay more than list price, according to CoreLogic.
Homebuyers looking for that perfect property may have to dig a little deeper to close a deal.
Almost 40% of the houses sold in the U.S. in June went for more than the list price, according to a study by CoreLogic. The number of homes sold for more than asking price is down a bit from 2018 but remains 10% above long-term averages. "The share of homes selling at or above list price has returned to early 2000 levels," CoreLogic economist Shu Chen says in a new report.
In the Dallas area, fewer houses sell above list price - 26% of Dallas properties in June, CoreLogic said.
North Texas home prices are at an all-time high. But the rate of home appreciation has slowed in the last year. After a long run of double-digit percentage home price increases, median home sales prices in North Texas are up just 2% so far in 2019, according to data from local real estate agents.
Most of the higher than list sales prices happen for affordable and low cost properties where there is much more demand than supply.
"It's particularly severe for entry-level housing," said CoreLogic chief economist Frank Nothaft. "With interest rates where they are now there is more interest in buying homes and the older millennials have started that transition from renting into owning. "They are typically looking at more moderate priced homes and that is where we have the shortest inventory," Nothaft said. Buyers of low and moderate-priced houses may also find them selves in a bidding war with cash buyers. " The first-time buyers are competing with investors," Nothaft said. "That's adding to that demand." And it's driving up prices as big investors tussle with millennials over a tight inventory of houses...
