Seattle has one of the hottest residential real estate markets in the U.S. right now—the typical home there went for $47,917 above list price, according to Redfin data—but sale prices above list are more common than you might think. Homes in almost two-thirds of the markets tracked by Redfin have an average sale price above the asking price. Prices have soared to record highs around the country and the number of homes on the market has dwindled, thanks to a rush on residential real estate sparked by low interest rates for mortgages and a desire for more space to work from home during the pandemic. The limited inventory has caused buyers to take steps like waiving the home inspection, making all-cash offers, writing “love letters,” or bidding above list price in an effort to make their bids more attractive to sellers. That’s likely pushed homeownership out of the reach of some, as homes become increasingly less affordable. Home prices have risen faster than people’s wages in nearly three-quarters of markets, according to an analysis released last week by ATTOM Data, which tracks the real estate market. Rising prices and a lack of inventory have caused sales to drop from their peak at the start of the year and the number of mortgage applications to fall. Have a question, comment, or story to share? You can reach Rob at ranthes@thebalance.com.
