WASHINGTON, DC (May 21) – Despite media reports of the emergence of so-called “bidding wars" in select housing markets, average home prices remained flat in the month of April, according to the latest results of the monthly Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.

 

While reports of some home listings attracting dozens of offers have become common this year, the closely-watched nationwide HousingPulse survey data found that most homes sold in April received only two or three offers and sold for below list price.

 

Average prices for home purchases declined slightly from March to April, according to transactions reported by HousingPulse survey respondents. The average price for non-distressed properties declined 1.5% from March to April, while the average price for short sales dipped 1.7%. For damaged REO the average price fell 1.4% and for move-in ready REO the average price slipped 0.3%.

 

The average number of offers for non-distressed properties sold in April was only 1.9, according to the nationwide sample. For damaged REO, move-in ready REO, and short sales, comparable offer statistics were 3.5, 3.1, and 3.0, respectively.

 

Despite random reports of homes being sold above list price, comprehensive HousingPulse survey statistics show that average ratios of sales prices to listing prices continued to be below 100% in the month of April. Average sales prices were below list prices for all four categories of properties covered by the survey—non-distressed, damaged REO, move-in ready REO, and short sales. For example, non-distressed properties sold for 95% of list price in April, on average, a metric that has not changed substantially for the past two years.

 

One factor continuing to hold home prices down is the high share of distressed properties, especially short sales. The total share of distressed properties in the housing market in April, as represented by the HousingPulse Distressed Property Index (DPI), was 47.9%, using a three-month moving average. This was the 26th month in a row that the DPI has been above 40%.

 

Even when potential homebuyers bid up property prices above list price, appraisals required for mortgage financing prevented transactions from closing at higher prices. “Yes, we are experiencing bidding wars on desirable properties, but many times the appraisals don't come in at the [contract] price. The appraisers are keeping the [transaction] prices down even when buyers see the value and are willing to pay more,” complained one real estate agent responding to the HousingPulse survey.

 

The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey involves approximately 2,500 real estate agents nationwide each month and provides up-to-date intelligence on home sales and mortgage usage patterns.

 

For more information on the survey, contact John Campbell at Campbell Surveys at (202) 363-2069 or [email protected].