US housing market fuels bidding wars, driving prices higher

Mar 10, 2022, 7:59 AM | Updated: 8:11 am

LOS ANGELES (AP) — Would-be homeowners are increasingly opting to pay sellers more than their asking price in hopes of edging out rival buyers as heightened competition for few homes on the market fuels bidding wars.

About 52% of U.S. homes sold in January fetched more than their list price, up from 40.2% a year earlier, according to data from Redfin, a national real estate brokerage.

It was the greatest share of homes sold above asking price ever recorded by Redfin, in data going back to February 2012.

The trend is apparent in some of the nation’s most expensive housing markets. Some 63.2% of homes sold in Los Angeles in January went for more than advertised. In Seattle that jumped to 65.9%.

These bidding wars are pushing home prices higher. The median home price jumped 15.4% in January from a year earlier to $350,300, according to the National Association of Realtors.

“The housing market was in a frenzy in the beginning of 2022, with buyers competing for a limited supply of homes and sellers reaping the rewards of bid-up prices,” said Taylor Marr, Redfin’s deputy chief economist.

Homebuyers face a difficult task navigating the housing market, with the number of homes for sale at record lows, prices rising sharply and average mortgage rates running higher than they were a year ago, and expected to climb further this year.

The dynamic has made it more likely that a home for sale will receive multiple offers. In January, 70% of offers put in by Redfin agents on behalf of clients were on homes that received bids from multiple would-be buyers, the brokerage said.

And increasingly, many buyers are going well above a home’s listing price to beat the competition.

Some 5,897 homes in 50 of the biggest U.S. metropolitan areas by population have sold this year for at least $100,000 above their listed price, more than double a year ago, according to a report by Redfin this week. In its analysis, the firm looked at sales data from Jan. 1 through Feb. 15.

California is home to six out of the top 10 metropolitan areas where homes are selling for $100,000 or more above the list price. Los Angeles led the way, with 718 homes selling for at least a six-figure bump over the asking price, more than any other major metropolitan area and up from 273 a year ago, Redfin said.

Oakland (580), San Jose (490) and Seattle (488) were the next on that list, followed by Anaheim (365), San Francisco (335), San Diego (323), Boston (158), Denver (125) and New York (109).

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


FILE - Michael Flynn, former national security adviser to former President Donald Trump, speaks to ...
Associated Press

Flynn, Gingrich testimony sought in Georgia election probe

ATLANTA (AP) — The Georgia prosecutor investigating whether then-President Donald Trump and others illegally tried to interfere in the 2020 election filed paperwork Friday seeking to compel testimony from a new batch of Trump allies, including former U.S. House Speaker Newt Gingrich and former national security adviser Michael Flynn. Fulton County District Attorney Fani Willis […]
16 hours ago
FILE - Immigrants seeking asylum who were recently reunited arrive at a hotel in San Antonio, July ...
Associated Press

Families separated at border push back on new evaluations

WASHINGTON (AP) — Parents suing after being separated from their children at the U.S-Mexico border are pushing back against a Justice Department effort to require additional psychological evaluations to measure how much the U.S. policy traumatized them, court documents show. The effect of the Trump-era policy that was maligned as inhumane by political and religious […]
16 hours ago
FILE - Vanderbilt University Medical Center in Nashville, Tenn., is pictured on July 16, 2013. The ...
Associated Press

VUMC to pause, review gender-affirming surgeries for minors

NASHVILLE, Tenn. (AP) — Officials at Vanderbilt University Medical Center announced Friday that they are pausing gender-affirming surgeries for minors in order to review their practices. The news, delivered in a letter sent to a lawmaker who has demanded an end to the surgeries, was publicly released Friday afternoon. It comes amid mounting political pressure […]
16 hours ago
FILE - In this May 24, 2019, photo, teachers and students from Northwest Montessori School in Seatt...
Associated Press

Gray whale population off western U.S. continues to decline

SEATTLE (AP) — U.S. researchers say the number of gray whales off western North America has continued to fall over the last two years, a decline that resembles previous population swings over the past several decades. According to an assessment by the National Oceanic and Atmospheric Administration Fisheries released Friday, the most recent count put […]
16 hours ago
FILE - This undated booking photo provided by the Birmingham, Ala., Police Department shows Patrick...
Associated Press

US jury convicts man in deadly Alabama kidnapping of child

BIRMINGHAM, Ala. (AP) — An Alabama man was convicted Friday on two federal charges in a 2019 kidnapping that led to the death of a 3-year-old girl, whose disappearance from a Birmingham birthday party led to 10 days of frantic searches. Patrick Devone Stallworth, 42, was convicted on the two kidnapping counts and faces a […]
16 hours ago
FILE - Sen. Ben Sasse, R-Neb., listens during a confirmation hearing for Supreme Court nominee Ket...
Associated Press

All eyes on Nebraska Gov. Ricketts to replace Sen. Sasse

OMAHA, Neb. (AP) — With Ben Sasse apparently ready to resign his Nebraska U.S. Senate seat to become president of the University of Florida, speculation is rampant that his temporary replacement could be Gov. Pete Ricketts. Ricketts, who like Sasse is a Republican, would otherwise be out of a political job due to term limits […]
16 hours ago

Sponsored Articles

Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
(Courtesy Condor)...
Condor Airlines

Condor Airlines shows passion for destinations from Sky Harbor with new-look aircraft

Condor Airlines brings passion to each flight and connects people to their dream destinations throughout the world.
US housing market fuels bidding wars, driving prices higher