The latest numbers from OJO Labs indicate possible improvements in the ongoing inventory shortage.
According to a new analysis by real estate software company OJO Labs, around half of homes in the US continued to sell at more than their asking price in July, although there is some evidence that the inventory situation could improve somewhat.
Analysis shows that across the United States, 49.6 percent of homes last month charged higher than their asking price. This is a significant increase compared to the same point in time last year, when only 26.8 percent of the apartments were sold above asking prices. However, it is very slightly lower than it was in June this year when 50.4 percent of the homes were sold for more than their asking price.
The report also shows that homes sold for an average of $ 8,578.30 when it was requested in July. That’s a decrease from $ 9,360.42 in June.
On average, US homes sold for an average of $ 6,821.43 below their asking prices in July 2020. Of course, July 2020 had several months in the coronavirus pandemic, and by that time the housing market was starting to pick up again but hadn’t exploded as it would in the months that followed.
The results of the report underscore the persistent inventory shortage in the US real estate market, which has led to brutal bidding warfare and ever-rising prices.
However, the slight movement in the numbers also suggests some relief for buyers – and their agents – may come. The report also comes amid other findings suggesting that bidding wars are cooling off and that significant inventory relief could occur later this year.
For now, however, buyers continue to face a competitive landscape, and on the same day that OJO Labs released its report, the National Association of Realtors announced that 94 percent of U.S. markets saw double-digit price growth in the second quarter of 2021.
In the case of OJO Labs, the company’s report identifies California’s Bay Area as the most competitive market in the US, with 76.4 percent of homes selling above their asking price. Homes in this area also sold for an average of $ 110,892.05 above their asking price. That’s far higher than in 2020, when homes in the Bay Area only sold for an average of $ 12,855.85.
OJO Labs’ report was compiled using multiple listing service data and examined metropolitan areas where more than 1,000 homes were sold in July.
Other highly competitive markets the report identified are Austin, where 65 percent of homes were sold above asking price, and Seattle, where 57.7 percent.
New York City, the largest metropolitan area in the country, was in the middle: 49.8 percent of the houses were overpriced in July. And in Los Angeles it was 64.2 percent.
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