Over/Under List Price: A Ten-Year Trend Analysis
December 31, 2023
The housing market is dynamic, with shifts in supply and demand constantly influencing sale prices. Let’s take a closer look at home sales over and under list prices for the past decade.
Key Insights from the Data:
- Rising Over-List Sales: The percentage of homes selling over list price has steadily climbed over the last 10 years, indicating a strengthening seller’s market. In 2014, only 12% of homes sold over list, compared to 67% in 2023.
- Peak Over-List Sales in 2021: The year 2021 saw the highest number of homes selling over list price, with 165 residences surpassing their initial asking price.
- Declining Under-List Sales: Conversely, homes selling under list price have become less common. In 2015, 257 homes sold under list, while in 2023, that number dropped to 62.
- Consistent List-Price Sales: Homes selling for exactly list price have remained relatively consistent, hovering around 30-50 homes annually.
Possible Explanations:
- Increased Demand: Factors like low interest rates (before 2023), a growing population, and limited housing inventory could contribute to the rise in over-list sales.
- Competitive Pricing Strategies: Sellers may be strategically pricing their homes to attract multiple offers and drive up prices.
- Changing Market Dynamics: Economic conditions, buyer preferences, and regional trends can all influence the balance between over-list and under-list sales.
The housing market is fluid, and these trends may not hold indefinitely. It’s essential to informed decisions based on your specific needs and goals.