At the end of 2018, the share of homes selling for more than their listing price fell after hitting a recovery high in May. In December, the share hit a near three-year low.
The share of above-list price homes sold was 19.4 percent in December, down 4.6 percent from May 2018, according to Zillow data. The high and low may mean changing trends in the national market, says economic data analyst Treh Manhertz, as inventory and rate hikes have been ticking up, and buyers have eased off the market, waiting for more favorable, affordable conditions. As well, some home sellers are still "undershooting reality" with their list price expectations, while others are "finally catching up with the reality of the market," says Manhertz.
Not only did the share of homes that sold above list fall, the average price above list dropped too. Among homes sold above list, the typical amount above list has remained above $6,000 for the last several years. As of December, the median amount had dropped to $5,860, while the median discount for homes selling below list held steady. This narrowing suggests buyers and sellers are syncing up on their price expectations.
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