San Diego sees biggest rise in homes selling below asking price

State of play: About 51% of San Diego homes went for less than the original list price in February, up from 42% a year earlier, according to a Redfin data analysis.

• That was the biggest increase among the top 50 U.S. metros as homebuyer competition rapidly slowed in Southern California.
• The share was nearly 18% in February 2022 after COVID unleashed a buying frenzy that has since abated.

Yes, but: In previous years, the proportion has flipped heading into the spring and summer, when more homes sell above list price.

What they're saying: "When sellers have a polished home that's priced appropriately, it will sell really, really quickly," San Diego real estate agent Charles Wheeler told Redfin.

• "It's the sellers that really want to push the value that get into trouble. Even overpricing by $20,000 can scare buyers off and cause a home to sit on the market," he said.

Zoom in: San Diego home prices have been rising in recent years, but now at a slower rate than other major metros.

• This spring, inventory shot up, which is good news for buyers, and prices dropped slightly in April compared to last year, but mortgage rates remain stubbornly high.

The big picture: Nationally, as inventory grows and buyers gain negotiating power, more homes are selling for less than their original listing price than a year ago.

• Anaheim, Charlotte, Atlanta and Sacramento saw the largest increases (after San Diego) in bids below asking price.
• Meanwhile, the opposite is happening in the Bay Area and New York.

The bottom line: Timing matters.

• Homes are most likely to sell above their asking price in late spring and early summer and least likely to in winter, the Redfin report notes.