Competition continues to soar into spring
By Patrick Kearns | May 12, 2022
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More than 50% of homes sold in the top 50 metro areas sold for more than initial list price, new data from OJO Labs revealed this week. It’s the first time half of all homes were sold above list price since the Austin-based real estate technology company began tracking the competition indicator in July 2021.
Overall, 52% of homes sold above list price in April, according to data pulled from Movoto by OJO, the residential real estate search site from OJO Labs. It’s a slight increase from the previous month when 45% of homes sold above list price and an even greater increase from April 2021 when 42% of homes in the nation’s top 50 metros areas sold above list price.
According to the data, U.S. homes in April sold for an average of $13,655 above list price across the same metro areas. March’s revised data shows homes actually sold for a greater premium, with homes being sold for, on average, $11,749 above list price. At this time last year, homes in April 2021 sold for, on average, $4,059 above list price, so the pace and cost of competition continue to rise.
San Francisco, California, was the nation’s most competitive metro area, as has been the case every month since OJO Labs began tracking the data. In April, 82% of homes in San Francisco sold above list price, and the average home sold for $190,921 above the initial list price. At this time last year, homes sold for, on average, $102,853 above list price.
Denver, Colorado, was the nation’s second most competitive metro, with 70% of homes selling above list price, compared to 66% last month. Homes sold for, on average, $33,464 above list price in Denver, up from $27,045 last month and $11,916 at this time last year. Finishing second on the list behind San Francisco is a continuation of Denver’s rise up the ranking. The metro jumped into the top five for the first time last month.
San Diego, California; Boston, Massachusetts; and Los Angeles, California rounded out the top five most competitive metro areas, all of which finished with greater than 65% of homes selling above list price in April.
Seattle, Washington, which fell out of the top five this month, had buyers paying the second-highest premium behind San Francisco, with the average home selling at $58,275 above list price — although that’s actually down slightly from the $59,687 above list price homes sold for, on average last month. Heavy price premiums aren’t new for Seattle-area buyers. In April 2021, homes sold for, on average, $37,561 above list price.
Norfolk, Virginia, was the nation’s least competitive metro, with only 9% of homes selling above list price. The rest of the bottom four were all in Florida, with Fort Myers, Miami, Pensacola, and West Palm Beach seeing fewer than 40% of all homes sold above list price. The biggest price discount came in Miami, where the average home sold for $12,799 below list price.