The U.S. housing market is still hot, but bidding wars are easing a bit from the frenzied days of last summer, according to data from Movoto by OJO, a real estate search site.
Some 37 percent of homes sold in January fetched more than their list price, down from 40 percent in December and 41 percent in November. January marked the seventh consecutive month that competition had declined on a month-over-month basis.
Despite the cooldown in recent months, the housing market remains a tough one for buyers. Inventories are low and competition for homes is fierce.
The 5 hottest housing markets
California dominated the list of the most competitive housing markets:
- San Francisco. In the nation’s most competitive metro area, 65 percent of homes sold above list price. Homes in San Francisco sold for an average of $85,424 above list price.
- San Diego. Fully 56 percent of homes sold above list price, going for an average of $17,111 above list price.
- Buffalo. In this newcomer to the top five, 55 percent of properties fetched more than the list price, getting an average of $5,884 over list.
- Los Angeles. While 54 percent of LA homes went above list price, the overall average price of homes was just $816 above the asking price.
- Boston. Some 51 percent of homes fetched more than the asking price. Sales averaged $3,147 over listing price.
The 5 coolest housing markets
At the opposite end of the competitiveness scale, two Wisconsin markets were cold.
- Green Bay-Appleton, Wisconsin. In the nation’s least competitive metro area, just 2 percent of homes sold above list price in January.
- Norfolk-Portsmouth-Newport News, Virginia. Just 6 percent of homes sold above list price in December.
- Madison, Wisconsin. OJO says 14 percent of homes went for more than the asking price.
- Boise, Idaho. In this once-hot market, 21 percent of properties sold for more than asking.
- Fort Myers-Naples, Florida. In this metro area, 23 percent of homes sold above their list prices.
Movoto by OJO is a unit of OJO Labs, a business partner of Bankrate.