Ten years after the housing crisis, the CoreLogic Home Price Index (HPI) has finally calmed down and returned to normal levels. As of June 2019, price levels were comparable to early 2000 levels.
Home price growth continues, just at a slower pace. The share of homes selling at or above listing prices came in at 39.2% in June. In San Francisco, 83% of homes sold in June were sold at or above the listing price. Buyers had to pay an additional +11% above list price to purchase a home in the City by the Bay. In Seattle, 74% of homes sold in June sold at or above the list price. 62% of homes sold in Minneapolis sere sold at or above the list price in June. (Note that all three of these cities have very low housing supplies. Low supplies translate into having to pay higher prices.)
Miami claimed the lowest number of homes sold at or above list. Its share of homes selling at or above list was actually negative at -19%. Average discounts for homes purchased came in at approximately -6.6%. (Miami home sales exemplified the low supply/high price reality…the metro saw a 7.7 month supply of houses in June 2019
Just over a year ago in Q2 2018, the number of homes sold at or above list price peaked at 43%. Now, due to home prices reaching beyond the limits of many buyers’ budgets, the number of homes selling at or above list price has dropped to 39.2% nationwide. This 39.2% is still +10% higher than the average number of homes sold at or above list price in 2000.
You’ll remember in Q2 2018 that a whopping 43% of homes sold nationwide sold at or above list prices. 39.2% sounds a bit more reasonable, right?
Thanks to Shu Chen with CoreLogic for source data.