Mortgages Blog

Finance Blogs » Mortgages Blog » Buyers pay closer to asking price

Buyers pay closer to asking price

By Holden Lewis ·
Thursday, March 14, 2013
Posted: 10 am ET

The gap is narrowing between the asking prices for homes and final sales prices as house values continue to climb, according to real estate valuation company FNC.

Home prices nationwide rose for the 11th straight month in FNC's Residential Price Index for January. The composite price index for the 100 largest metro areas was up 5.7 percent compared to January 2012.

Sellers get more pricing power

As home prices rose, sellers gained leverage over buyers. This January, the average house sold for 93.5 percent of its asking price. One year before, houses fetched an average of 90.3 percent of the asking price.

"A limited housing supply and declining foreclosure sales are contributing to the recovery of underlying property values," FNC said in a news release, adding that foreclosures were 20.2 percent of home sales in January, compared to 26.9 percent of sales a year before.

Mountain West gains the most

Home prices are rising fastest in the west. In Phoenix, home prices rose 28.6 percent in 2012, according to FNC data. Prices in Las Vegas and Denver were up around 12.5 percent, and prices in San Francisco rose 11.9 percent.

FNC looked at what happened to house prices from January 2007 to this January, and only four major metro areas showed higher home values over the six-year period. Denver home prices rose 5.4 percent over those six years; San Antonio was up 2 percent. Houston prices climbed 1.6 percent, and prices in Columbus, Ohio, essentially were unchanged, rising 0.2 percent.

Over those same six years, four metro areas had price declines of more than 50 percent: Las Vegas (down 57.1 percent); Riverside, Calif. (down 54.6 percent); Orlando, Fla. (down 53.6 percent), and Miami (down 50.2 percent).

Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
1 Comment