In the four weeks ending on September 23, homes that sold above asking price dipped below 2016 levels, according to the latest data from Redfin.
According to the company, 22.9% of homes sold for more than asking price, declining from 25.5% of homes the same time last year. Notably, the share of homes that sold above asking price has been steadily decreasing from June, when it was at 29%.
“With home price growth slowing to 4.7% in August, and a record-high share of sellers dropping their prices, the fact that fewer homes are selling above their asking price is another indication that competition is getting less intense than it has been in recent years," Redfin Senior Economist Taylor Marr stated.
The report indicates that the decline is most apparent in highly competitive markets like Seattle, Denver, Portland and the Bay Area.
In Seattle, the share of homes sold above list fell to 30.3% from 50.6% the same time in 2017. Remarkably, this is the lowest the share of homes has been since 2014.
Competition is tighter in affordable inland metros, including Buffalo, New York, Indianapolis and Las Vegas, according to the report.
This is largely attributed to a steep decline in inventory, resulting in the share of homes selling above list price growing significantly.
“Inventory pressures are easing in the hottest markets, which is welcome news for homebuyers who are increasingly able to submit an offer without competition and get bids accepted without offering above list price,” Marr concluded.