A near-record number of homes sold for more than $100,000 above asking price in the first six weeks of 2022, proving bidding wars are not yet a thing of the past.
Nationally, 5,897 homes sold for at least $100,000 over the asking price from Jan. 1 through Feb. 15, up from 2,241 during the same time last year, according to a new Redfin report. January ended up being the most competitive month on record, and with housing inventory still at record lows, it could remain that way for some time.
In Miami, 28 homes sold for at least $100,000 over asking price, up from four in 2021. West Palm Beach had 34 of those transactions, compared to eight last year. Fort Lauderdale had 16 this year and just one in the same period last year.
Homebuyer competition continues to intensify, as many pay well above the list price to beat out other bidders. That competition drove median home-sale prices up 14% year-over-year to $376,000, just shy of an all-time high, according to the report.
Redfin deputy chief economist Taylor Marr said the housing market was in a frenzy at the start of the new year as buyers competed for a limited supply of homes, and sellers reaped the benefits.
“Buyers are likely to face strong competition at least through the next few months as demand is buoyed by the temporary drop in mortgage rates fueled by the Russian invasion of Ukraine,” Marr said in a press release. “But bidding wars may ease a bit by summer as more new listings come on the market and mortgage rates resume their rise. Homes are still likely to sell above list price, but the premiums will probably be lower.”
Some of that competition was due to buyers seeking to take advantage of December’s 3.1% mortgage rates before they started to rise, Redfin said. In comparison, for the week ended March 3, the average 30-year mortgage rate was 3.76%, down from February’s peak, but much higher than last year’s record lows.