Buyers aren’t just opening their wallets to buy homes this year — they’re also emptying their pockets and car cup holders.
Nearly 6,000 homes have sold for at least $100,000 above asking price through Feb. 15, according to Redfin. The figure is well over double those sold in the same period of 2021, which reached just over 2,200.
Expensive sales account for 1.8% of home sales share so far this year, down from 0.7% last year.
As has been the case for much of the past year, tight supply in the face of strong demand has prompted buyers to bid high in hopes of securing their dream home. Competition remains high for buyers: a record 70% of property offers written by Redfin agents faced competing offers in January.
Meanwhile, the median home sale price is $376,200, near a record high.
“The housing market was in a frenzy at the start of 2022, with buyers vying for a limited supply of homes and sellers reaping the rewards of rising prices,” said Redfin deputy chief economist Taylor Marr. who added that demand could increase as mortgage rates temporarily fall after Russia invaded Ukraine.
“Homes are still likely to sell above list price, but premiums will likely be lower [by the summer]“, Marr added.
Nowhere are homes selling six figures above asking price more often than in Los Angeles, where 718 homes sold for at least $100,000 above asking price through Feb. 15, according to Redfin. That represents 11.3% of all home sales in the Metro, up 7.4 percentage points year-over-year.
Six of the top 10 metros meeting the above demand criteria were in California, as Los Angeles was directly followed in volume by Oakland and San Jose. San Francisco is sixth with 335 sales, a market share of 40%. New York rounded out the top 10 with 109 sales exceeding demand by six figures, or 1.3% of the local market.
Dallas has seen a surge this year with 95 sales hitting the threshold, up from just seven in 2021. Austin recorded 74 home sales topping demand by six figures, up from 41 last year. Miami only had four sales hitting that mark at the same time in 2021, but had 28 this year. Chicago also had four at this point last year and has 12 this year.
Families who don’t want to break the bank should look to Pittsburgh and Indianapolis: both markets saw only one sale of at least $100,000 above demand through Feb. 15.