Phoenix saw rise in homes selling above asking price in 2018

PHOENIX – The percentage of homes selling for above the asking price has been declining nationally, according to a new report, but Phoenix is bucking that trend.

The report, released by Zillow on Friday, said 16.6 percent of homes sold in the Phoenix market in 2018 went for more than the list price, up from 14.9 percent the previous year.

Phoenix buyers who went over the asking price last year paid an extra $4,000 on average, a premium of 1.67 percent.

The real estate website also found that 16.3 percent of Phoenix homes sold above list in December, an increase from 14.9 percent in November.

The Valley still trails the rest of the U.S. in the category, but the national market saw a sharp decline over the latter half of 2018.

After a peak of 24 percent of U.S. homes selling above list in May, the share dropped every month for the rest of the year.

The decline from 21 percent in November to 19.4 percent in December was the largest month-over-month fall since 2012.

“With mortgage rates now back down, early data from the first month of 2019 suggest that it is still premature to call it a buyer’s market,” Zillow senior economist Aaron Terrazas said in a press release.

“But more than any time in recent memory, it is important for sellers to be thoughtful in their listing strategy. Buyers are out there, but they’re no longer fighting each other tooth and nail to get in the door.”

Activity was strong enough over the first part of 2018 to produce a slight annual uptick, from 22.7 percent in 2017 to 23.5 percent.

San Jose, California had the nation’s largest share of homes sold over asking price in 2018 at 64.1 percent, with the buyers paying on average an extra $101,000.

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