Boston condos that sold over asking price
In what’s been a historic, frantic market, homes selling for large sums over list prices have risen sharply since January. In the second quarter, it grew even higher.
According to a new report from Zillow, 1,670 homes nationally sold for $500,000 or more over list price in the second quarter of 2021, three times more than they did in the first quarter. Homes selling for $1 million over list price doubled over the previous quarter, and the share of homes sold for 30% or more over list price rose to 1.4% in the second quarter, compared to 0.9% in the first three months of the year.
Boston was no exception.
In the second quarter, three homes in the Boston market sold for $1 million or more over their initial list prices, compared to two in the first quarter. Twenty-one homes sold for $500,000 or more over list price, compared to 10 in the first three months of the year and 13 in the second quarter of 2019. Just 1% of homes sold for 30% or more above list price, compared to 0.7% in the first quarter.
The report cites downward-trending interest rates as a major demand driver, giving homebuyers more buying power, as well as record-high home appreciation and an increase in remote-work options.
More and more homebuyers are paying above the asking price in America’s largest metros (yes, including the downtown Boston condo market)
Prices were highest in Oakland, where the typical home sold for nearly 11 percent over the listing in the first half of this year. Just over 5,200 homes sold for at least $100,000 above asking during that period, compared to just 777 in the first half of 2020. Pandemic lockdowns last spring jammed the brakes on homebuying, which led to bigger discounts on homes that remained on the market.
Austin, Texas; Denver, San Francisco, San Jose and Seattle all saw pricing of 5 to 9 percent above asking in the first six months of the year. Premiums were more modest last year in San Francisco, San Jose, and Seattle; it was more common for homes to sell below asking in Austin and Denver.
Austin has seen an influx of people working in tech sectors over the last couple of years, which has contributed to rising home prices.
“I’ve never seen anything like this housing market,” Redfin agent Scott Petrich said. He added that “most of these people have the money to compete with other buyers and drive up prices.”
[Inman] — Dennis Lynch
Boston condos that sold over the asking price
Here’s the big question. Who will be applauding when the curtain comes down in 2022? Boston condo buyers or Boston condo sellers?
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Updated: Summer 2021