Homebuyer Search Price Range is Nearly 20 Percent Below List Price

There continues to be a price mismatch between homebuyers and sellers, according to REALTORS® who responded to NAR’s April 2019 REALTORS® Confidence Index Survey. In April 2019, REALTORS® reported that 48 percent of homebuyers were looking for a home at $250,000 or below. However, only 40 percent of the homes that sellers’ agents listed were priced at $250,000 or below. Among seller’s agents, the median list price was $307,200, which is $51,300 or 20 percent more than the median home buyer search price of $255,900

There continues to be a mismatch between demand for homes and the supply. Buyer’s agents reported on average taking nearly five client tours in April 2019, while seller’s agents on average reported listing three homes during the month. On average, a property that was sold in April 2019 had nearly three offers.

A small fraction of sellers provides incentives to assist buyers. In 2015, 26 percent of sellers offered incentives, with the share declining to 19 percent in 2018.  In the first four months of 2019, 22 percent of sellers provided incentives to assist buyers, such as helping with closing costs (10%), offering a home warranty that can cover buyers for repairs/replacement such as for heating, cooling, plumbing, electrical, and major built-in appliance (9%), undertaking remodeling (3%), and other incentives (2%).

What This Means to REALTORS®: Buyers are still looking for homes with prices that are typically below what is offered on the market. Although it is still a sellers’ market, sellers can make the property more affordable for homebuyers (especially those on the high end) by providing incentives.