33% of Southern California homebuyers paying above list price

By JONATHAN LANSNER  | PUBLISHED: November 12, 2020 at 2:46 p.m. | UPDATED: November 12, 2020 at 5:01 p.m.

Buzz: One-third of Southern California homebuyers are paying above the seller’s asking price.

Source: Zillow

The Trend

The above-ask trend is a sharp increase from last fall. In September, 33% of homes sold above list price in both Los Angeles-Orange counties and the Inland Empire. A year earlier, it was 21% in L.A.-O.C. and 16% in Riverside and San Bernardino counties.

Nationally, 22% of buyers paid above the list price vs. 15% in September 2019.

The Dissection

Who knew a pandemic would boost homebuying this much.

I can’t argue with Zillow’s commentary: “Strong demand is likely because of buyers wanting to lock in low mortgage rates and taking advantage of the new freedom to telecommute from a more affordable area. Competition from other buyers is pushing them to make offers above list price while inventory is low and sales are happening quickly.”

L.A.-O.C.: The typical amount paid over list was $34,000 for September. In the hottest price segment — $525,000 and $685,000 — 39% of homes sold over the asking price. As of Oct. 31, inventory is down 21% from a year ago and homes go from list to escrow in 12 days.