In Cali, Half of Homes Sell Above List Price
Bidding wars are heating up in the Golden State, with nearly half of the homes sold in California so far this year fetching more than the asking price, the California Association of REALTORS® reports.
According to CAR, 49.5 percent of homes on the market have sold above list price so far this year, nearly double the 2012 figure (25.9 percent). The historical average in California for above-list-price sales is 18 percent.
Limited inventory is contributing to the multiple-offer situations on more than 72 percent of the sales, CAR’s 2013 Annual Housing Market Survey found. Distressed sales are also accounting for a high percentage of the bidding wars: 91 percent of REO properties have attracted multiple offers this year. Seven of 10 equity home sales attracted more than one bid this year, compared to 51 percent in 2012, CAR reports.
"Sellers are more upbeat about the housing market and are more comfortable with their financial situation,” says CAR President Don Faught. “As the real estate industry and the economy continue to recover, many sellers regained confidence in owning a home since the Great Recession. The number of home sellers planning on repurchasing, in fact, increased to the highest level since 2007, which suggests that repeat buyers could be the driving force in the housing market in 2014."
Source: “California is Sellers' Market as Over-List Price Sales Soar,” Mortgage News Daily (Oct. 30, 2013)