FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 05 March 2016

Is It Bidding Time Again For Home Purchases?

from CoreLogic

-- this post authored by Shu Chen

The housing market continues to recover from the foreclosure crisis. Home price indexes and home sales are returning to pre-crisis levels, and in some areas prices and sales have reached new highs. With demand strong and inventory thin, the share of homes selling for the list price or more has also returned to pre-bust levels.

With inventory tight, homes are more likely to sell above the asking price. Figure 1 shows the share of homes that sold at a price above, equal to or below the list price. [1] The number of homes selling at or above list price has recovered to early 2006 levels. That number was 3.5 times the trough in January 2008 and represented more than one-quarter of total sales in October 2015. Compared with homes selling for their list price or more, the number of homes selling for less than list price has been relatively stable over the past 15 years. Regardless of market conditions, there are always highly motivated sellers willing to drop their price.

Figure 2 shows the inventory of homes for sale since 2000.1 In October 2015, the inventory of existing homes for sale was back to its January 2006 level, and was 33.1 percent below its July 2007 peak. However, because of a shortage of skilled labor and lots, the new-home inventory remained historically low at 3.6 percent of total inventory in October 2015, only about one-quarter of its peak in October 2006.

Inventory of new and exisiting home

Housing markets are different across the nation. Therefore sales and listing patterns also vary geographically. Figure 3 shows the share of homes that sold at, above, or below their list prices in 16 CBSAs during October 2015. San Francisco had the largest share of homes - 82 percent - that sold for at least the list price. Seattle and Los Angeles followed with 52 and 42 percent selling for the list price or more, respectively. Cincinnati and Chicago had the lowest share - 20 percent - of homes selling at or above the list price in October 2015.

Share of Sales At, Above or Below List Price by CBSA

Note: The U.S. statistics are based on data for 66 CBSAs. Each of these CBSAs has at least 50 percent coverage since 2000. CoreLogic MLS data coverage usually increases over time, which might also contribute to inventory increases.


[1] Figures 1 and 2 use 66 CBSAs to aggregate national level statistics. The inventory has not been adjusted for growth in the number of households over time. As the number of households increases over time, the 'equivalent' level of inventory should rise as well.


© 2016 CoreLogic, Inc. All rights reserved

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

You can also comment using Facebook directly using he comment block below.

Econintersect Contributors


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
Rising Tide Does Not Lift All Ships
Comments on Feyerabend’s ‘Against Method’, Part II
News Blog
New Seasonal Outlook Updates from NOAA and JAMSTEC - Let's Compare Them.
Infographic Of The Day: Driving Into A Battery Powered Future
Earthquake Risk - Location Matters
Investor Alert: Be On The Lookout For Investment Scams Related To Hurricane Matthew
Lost In Translation: Five Common English Phrases You May Be Using Incorrectly
The Size And Scope Of Samsung's Business
Immigration Is The Top Worry For Britons
People Killed By Russian Airstrikes In Syria
Have You Taken These 4 Simple Steps To Improve Your Trading?
14 October 2016: ECRI's WLI Growth Index Insignificantly Declines
Mom Breaks Down In Tears When Son With Autism Meets Service Dog
Rail Week Ending 15 October 2016 Paints A Negative Economic View
What Is The New Normal For U.S. Growth?
Investing Blog
FinTech Is Taking A Bite Out Of Banks
Options Early Assignment - Should You Worry?
Opinion Blog
US 2016 Election: Will US-China Relations Change
Prop. 51 Versus A State-Owned Bank: How California Can Save $10 Billion On A $9 Billion Loan
Precious Metals Blog
How Will The Election Outcome Impact Precious Metals?
Live Markets
21Oct2016 Market Close: Major US Indexes Close Flat On Low Volume, Crude Prices Resume Climb, US Dollar Stabilizes In Mid 98 Handle, Yes, Most Investors Are Worried Which Way This Market Will Go
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

Crowdfunding ....



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved