It’s not unusual to read about bidding wars for homes in markets like San Francisco or New York City, where high prices for real estate are the rule, not the exception. Less common are bidding wars in smaller cities not located along the nation’s hot coastal real estate markets.
For those who have no experience of the phenomenon, a bidding war happens when multiple bids over the asking price are received on a property. These wars can be especially disheartening to potential buyers who stretch their budget to the breaking point to put in an offer they may barely be able to afford — and don’t win anyway.
Researchers at Realtor.com have compared listing and sales price data for two periods — between March 2015 and February 2016 and March 2017 and February 2018 — to find the 150 cities with the highest percentage of homes selling for more than the asking price.
The results may be surprising. Here are the 10 cities where the most homes are sold at more than the asking price. We’ve included the median home price, the percentage of homes sold over the asking price, and the increase in the percentage of homes sold above the asking price for the two periods the researchers studied.
1. Akron, Ohio
> Median list price: $150,000
> Share of sales above asking price: 20.6%
> Increase in share of homes sold above asking price: 91.7%
2. Worcester, Massachusetts
> Median list price: $286,400
> Share of sales above asking price: 41.5%
> Increase in share of homes sold above asking price: 88.1%
3. Lexington, Kentucky
> Median list price: $287,200
> Share of sales above asking price: 22.7%
> Increase in share of homes sold above asking price: 86.4%
4. Irvine, California
> Median list price: $950,000
> Share of sales above asking price: 30.3%
> Increase in share of homes sold above asking price: 85.5%
5. Greensboro, North Carolina
> Median list price: $201,700
> Share of sales above asking price: 29.0%
> Increase in share of homes sold above asking price: 81%
6. Sioux Falls, South Dakota
> Median list price: $240,000
> Share of sales above asking price: 32.8%
> Increase in share of homes sold above asking price: 74.2%
7. Madison, Wisconsin
> Median list price: $317,000
> Share of sales above asking price: 40.9%
> Increase in share of homes sold above asking price: 73.4%
8. Louisville, Kentucky
> Median list price: $242,000
> Share of sales above asking price: 26.1%
> Increase in share of homes sold above asking price: 69.9%
9. Tacoma, Washington
> Median list price: $290,000
> Share of sales above asking price: 56.5%
> Increase in share of homes sold above asking price: 68.4%
10. Little Rock, Arkansas
> Median list price: $176,000
> Share of sales above asking price: 13.5%
> Increase in share of homes sold above asking price: $67.5%
Visit the Realtor.com website for more details and comments on these hot markets.
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