Why Some Homes Are Still Selling Above Asking Price

Across much of the US housing market, momentum is beginning to move back in favor of homebuyers.

Inventory is improving, more sellers are cutting their list prices, and shoppers who once felt pressured to act fast are now taking a more measured approach.

Yet one part of the market is still proving remarkably competitive: the homes buyers consider truly worth fighting for.

New figures from Redfin show that 25.9 percent of recently sold US homes closed above their asking price — more than one in four sales, and up from 25 percent during the same period last year.

So while buyers may have gained leverage in many negotiations, the most appealing properties are still drawing intense interest and occasional bidding wars, even as the broader housing market cools.

What sets those homes apart? Redfin agents say the winning formula is fairly clear: a move-in-ready property in a sought-after location. Together, those two features can persuade buyers to offer more than the listing price.

In real estate terms, agents often describe a move-in-ready, or “turnkey,” home as one that allows buyers to settle in right away without facing major repairs, upgrades or renovation projects.

That typically means essential systems such as heating and cooling, plumbing and electrical are working properly, appliances are in usable condition, and there are no glaring structural concerns. Cosmetic details such as paint, flooring and finishes are also expected to be well maintained.

Meanwhile, a desirable location is an area that combines strong neighborhood appeal with convenience and long-term value. Good schools, low crime, walkability, nearby parks and amenities, easy commuting and access to public transit can all make an area more attractive to buyers. 

The finding comes as the wider market becomes increasingly buyer-friendly. New listings rose 2.1 percent week over week in the four weeks ending August 30, reaching 383,795 – the highest level since August 2022.

Active listings also increased 0.4 percent to more than 1.51 million, giving house hunters more choice.

But demand is failing to keep pace. Pending home sales slipped 0.1 percent week over week and 2.5 percent year over year to 308,282, their lowest level since February.

That mismatch means buyers can increasingly afford to be picky. Yet when a home ticks enough boxes, they are still prepared to compete.

The appeal of a move-in-ready property is obvious in an era when borrowing costs remain painfully high.

The average 30-year fixed mortgage rate was 6.66 percent for the week ending August 27, while the daily rate had climbed to 6.91 percent by September 2. 

Redfin puts the typical monthly mortgage payment at $2,592 – up 0.7 percent from a year earlier. 

Location is the other crucial ingredient. A desirable neighborhood can mean different things to different buyers, but Redfin’s latest data show that location remains powerful enough to keep competition alive even while the national market cools.

Some of the strongest price growth is concentrated in particular metropolitan areas. San Francisco recorded a 9 percent year-over-year increase in median sale prices, followed by West Palm Beach at 8.1 percent.

Cincinnati rose 7.8 percent, while Milwaukee and Pittsburgh both recorded 7.4 percent increases.

By contrast, some markets are moving in the opposite direction. Median sale prices fell 7.1 percent year over year in Austin and 6.2 percent in Seattle.

‘Prices are falling in the places where sellers outnumber buyers,’ Redfin Chief Economist Daryl Fairweather previously told Our News Outlet. ‘In the south, you have more sellers of new construction because of the building boom that happened during the pandemic, and fewer buyers because they are facing high insurance and property taxes on top of high mortgage rates.’ 

‘In the midwest and northeast there are more buyers and fewer sellers because in places like Cincinnati and Rochester homes are still affordable to middle class buyers, but there isn’t much new construction.’ 

That growing divide shows why the national housing market can look buyer-friendly while individual properties remain fiercely competitive. The overall median US sale price was $398,632, up 2.2 percent year over year.

But the median asking price actually slipped 0.1 percent, while 20.9 percent of listings had undergone a price reduction, up from 20.2 percent. 

In other words, sellers increasingly have to meet buyers halfway – unless their property is one of the homes that stands out.

The typical property is also taking 45 days to sell, while 30.4 percent of homes go off the market within two weeks.

And while the number of people actively searching for property appears to be cooling – Google searches for ‘homes for sale’ were down 13 percent from a month earlier – there is still competition for the right house.

For sellers, the message is increasingly clear: simply putting a property on the market is no guarantee of a bidding war.

But a home that is ready to occupy and sits in a location buyers desperately want can still buck the trend.

For buyers, meanwhile, the changing market brings an unusual mix of opportunities and frustration.

There are more properties available, greater negotiating power and growing evidence that some sellers are lowering their expectations.

But if the perfect house appears – particularly one that requires little work in a coveted neighborhood – waiting for a bargain could mean watching someone else snap it up.