In what’s been a historic, frantic market, homes selling for large sums over list prices have risen sharply since January. In the second quarter, it grew even higher.
According to a new report from Zillow, 1,670 homes nationally sold for $500,000 or more over list price in the second quarter of 2021, three times more than they did in the first quarter. Homes selling for $1 million over list price doubled over the previous quarter, and the share of homes sold for 30% or more over list price rose to 1.4% in the second quarter, compared to 0.9% in the first three months of the year.
The Miami-Fort Lauderdale area was no exception.
In the second quarter, a whopping 20 homes in the market sold for $1 million or more over their initial list prices, compared to nine in the first quarter. Seventy-four homes sold for $500,000 or more over list price, compared to 18 in the first three months of the year and six in the second quarter of 2019. Just 1% of homes sold for 30% or more above list price, compared to 0.6% in the first quarter.
The report cites downward-trending interest rates as a major demand driver, giving homebuyers more buying power, as well as record-high home appreciation and an increase in remote-work options.