COMPETITION

More homes are selling above list price despite increasing rates

Even with inventory rising, the housing market is still incredibly competitive

By Patrick Kearns | Jun 16, 2022

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More than 50% of homes sold in the top 50 metro areas sold for more than initial list price for the second consecutive month, new data from OJO Labs revealed this week. It’s also the second 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, which shows competition is still high despite inventory levels starting to rise. 

Overall, 53% of homes sold above list price in May, 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 52% of homes sold above list price and an even greater increase from May 2021 when 46% of homes in the nation’s top 50 metros areas sold above list price. 

While the percentage of homes selling above list price continued to increase, the actual premium that buyers should expect to pay decreased slightly from last month, which means the cost of that high level of competition is slightly waning. U.S. homes in May sold for an average of $12,895 above list price across the same metro areas. In April, that premium amounted to $13,655 and in May 2021, buyers paid, on average, $7,183 above list price in the nation’s top metros. 

San Francisco, California, was once again the nation’s most competitive metro area, as has been the case every month since OJO Labs began tracking the data. In April, 78% of homes in San Francisco sold above list price, and the average home sold for $160,391 above the initial list price — down from more than $190,000 last month. 

Boston, Massachusetts made a surprise leap up the list and registered as the nation’s second more competitive metro with 71% of homes being sold above initial list price in the New England city. Homes sold for, on average, $26,005 above list price in Boston in May, up from $23,206 last month and $10,192 at this time last year. 

Hartford, Connecticut; San Diego, California; and Denver, Colorado, rounded out the top five most competitive metro areas, all of which finished with greater than 65% of homes selling above list price in May. In total, 17 metros finished the month with 60% or more of all home sales coming in above list price. 

Seattle, Washington, had buyers paying the second-highest premium behind San Francisco, with the average home selling at $42,293 above list price, followed by San Diego, where buyers paid $38,780 above list price.

Norfolk, Virginia, was the nation’s least competitive metro, with only 8% of homes selling above list price. The rest of the bottom four were all in Florida, with Fort Myers, Pensacola, Miami, 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 $8,370 below list price.

The report examined the top 50 metro areas by homes sold, for which multiple listing service data is available and accurate. Home price data draws from local MLS sold data on residential search site Movoto by OJO.

Patrick Kearns is the Director of Storytelling at OJO Labs. Prior to joining OJO Labs, Patrick worked as a journalist for more than a decade, most recently covering housing and real estate at Inman News. He’s also written for The Guardian, The Washington Post, Sports Illustrated, Vice, and others.

OJO is a real estate platform that provides support and guidance to match each moment of the home journey, so everyone feels ready, equipped, and inspired to take the next step. Learn more.