A new data report from Redfin (NASDAQ: RDFN) has determined the median home-sale price hit a record $396,500 during the four weeks ending June 15, a 1% year-over-year uptick. However, this is roughly $26,000 lower than the median asking price of $422,238.
Redfin noted that homes are selling for below their asking price due to greater quantity of sellers than buyers. New listings of homes for sale are up 4.4% from one year earlier while total listings are up 14.5%. At the same time, pending sales are down 1.5% from one year earlier and mortgage purchase applications are down 3% week-over-week.
“I’m explaining to sellers more and more that we need to be strategic in our pricing strategy because homes that are overpriced, even slightly, are likely to sit on the market and invite buyers to negotiate,” said Kelly Connally, a Redfin Premier agent in Tulsa, Oklahoma. “Pricing is most important, but with fewer buyers than usual out there, sellers should also make sure their home is in excellent condition and be ready to make repairs upon inspection. There are a few exceptions: Homes in desirable locations that are in perfect condition are still hot and typically sell at or above asking price.”
