SANTA CLARA, Calif.,
Aug. 29, 2018 /PRNewswire/ --
Realtor.com® today announced the findings of its August
housing trend report which revealed a surge in price cuts and the
second largest drop in the U.S. median list price in three years.
Although competition between buyers remained stiff and list prices
continue to rise, the report also revealed a slowdown in price
growth and easing of inventory declines.
"Buyers, exhausted by bidding wars and little choice in
inventory, could finally catch a break," said Danielle Hale, chief economist for
realtor.com®. "An increase in price cuts suggests
that sellers are starting to become more flexible, especially in
pricey markets. However, affordability is a concern in most areas
which continue to be sellers' markets. Fierce competition and low
inventory continue to push up prices. While buyers are gaining
leverage in some markets, we are still far from a true 'buyer's
market.'"
The median listing price in the U.S. decreased by $4,000 in August, dropping to $295,000 from a record-high of $299,000 in July. This is the second largest
monthly list price drop since August
2015. While prices are still 7 percent higher than they were
one year ago, the year-over-year increase is smaller than the 10
percent year-over-year gain seen last August.
The deceleration in price growth was also observed in the larger
markets. The average yearly growth in median list prices in the
largest 45 markets combined was 6 percent, down from 8 percent this
time last year.
Meanwhile, price cuts are on the rise, especially in pricey
markets where inventory is rising. The proportion of listings that
feature price cuts rose 1.5 percentage points in the last year to
19.1 percent in August. The share of price cuts among listings is
now 1.5 times more prevalent than in August
2012 when 13 percent of listings featured price discounts.
This upward movement was more pronounced in major metropolitan
areas in the last year including: Seattle with an 8 percent increase in cuts;
San Jose with a 7 percent
increase; and a 5 percent increase in San
Diego, Riverside,
Indianapolis and Los Angeles. In fact, 39 of the 45 largest
markets saw an increase in the share of price cuts over last
year.
As predicted in the realtor.com® 2018 housing
forecast, the rate of inventory decline slowed, with only 2 percent
fewer for-sale listings on the market than there were in
August 2017. Inventory increased 2
percent over July, in line with the typical seasonal increase. The
trend continues to gain strength as the last week of August saw the
first year-over-year increase in inventory in four years.
Approximately 488,000 new listings entered the market during
August. San Jose, Seattle and San
Diego were the three markets with the biggest inventory
jumps over last year, all posting increases of 28 percent or
more.
Price Gains and Price Cuts in Largest 45 U.S.
Metros*
Metro
|
Price Cuts Aug.
2018
vs. 2017
|
Aug 2018 Price Cut
Share
|
Aug 2018 Median
Listing Price YoY
|
Seattle-Tacoma-Bellevue, Wash.
|
+8%
|
28%
|
14%
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
+7%
|
17%
|
16%
|
San Diego-Carlsbad,
Calif.
|
+5%
|
27%
|
1%
|
Riverside-San
Bernardino-Ontario, Calif.
|
+5%
|
21%
|
6%
|
Indianapolis-Carmel-Anderson, Ind.
|
+5%
|
30%
|
21%
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
+5%
|
19%
|
6%
|
Jacksonville,
Fla.
|
+4%
|
24%
|
2%
|
Nashville-Davidson--Murfreesboro--Franklin,
Tenn.
|
+3%
|
19%
|
-1%
|
Orlando-Kissimmee-Sanford, Fla.
|
+3%
|
26%
|
6%
|
Birmingham-Hoover,
Ala.
|
+3%
|
16%
|
8%
|
San
Francisco-Oakland-Hayward, Calif.
|
+3%
|
14%
|
5%
|
Dallas-Fort
Worth-Arlington, Texas
|
+3%
|
30%
|
0%
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
+3%
|
28%
|
2%
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
+2%
|
28%
|
1%
|
Phoenix-Mesa-Scottsdale, Ariz.
|
+2%
|
30%
|
5%
|
Detroit-Warren-Dearborn, Mich.
|
+2%
|
25%
|
9%
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
+2%
|
26%
|
2%
|
Boston-Cambridge-Newton, Mass.-N.H.
|
+2%
|
19%
|
3%
|
Raleigh,
N.C.
|
+2%
|
19%
|
3%
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
+2%
|
25%
|
9%
|
Rochester,
N.Y.
|
+2%
|
19%
|
8%
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
+2%
|
15%
|
1%
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
+2%
|
22%
|
10%
|
Memphis,
Tenn.-Mo.-Ark.
|
+2%
|
19%
|
7%
|
Louisville/Jefferson
County, Ky.-Ind.
|
+2%
|
23%
|
8%
|
New
York-Newark-Jersey City, N.Y.-N.J.-Pa.
|
+2%
|
15%
|
11%
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
+1%
|
22%
|
6%
|
Cleveland-Elyria,
Ohio
|
+1%
|
21%
|
7%
|
Baltimore-Columbia-Towson, Md.
|
+1%
|
22%
|
7%
|
Hartford-West
Hartford-East Hartford, Conn.
|
+1%
|
18%
|
2%
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
+1%
|
20%
|
6%
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
+1%
|
19%
|
5%
|
Cincinnati,
Ohio-Ky.-Ind.
|
+1%
|
25%
|
9%
|
Kansas City,
Mo.-Kan.
|
+1%
|
19%
|
9%
|
Washington-Arlington-Alexandria,
D.C.-Va.-Md.-W.Va.
|
+1%
|
19%
|
2%
|
San Antonio-New
Braunfels, Texas
|
0%
|
23%
|
2%
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
0%
|
22%
|
8%
|
Houston-The
Woodlands-Sugar Land, Texas
|
0%
|
24%
|
4%
|
Richmond,
Va.
|
0%
|
20%
|
8%
|
Oklahoma City,
Okla.
|
0%
|
27%
|
3%
|
New Orleans-Metairie,
La.
|
0%
|
21%
|
2%
|
Pittsburgh,
Pa.
|
-1%
|
18%
|
3%
|
St. Louis,
Mo.-Ill.
|
-1%
|
22%
|
9%
|
Milwaukee-Waukesha-West Allis, Wis.
|
-2%
|
18%
|
9%
|
Austin-Round Rock,
Texas
|
-2%
|
29%
|
-3%
|
|
* Excluded: Denver,
Columbus, Las Vegas due to MLS feed changes during the period
analyzed.
|
Realtor.com® tracks national housing
trends as well as data for the 500 largest U.S. metros. For August
trend data, please
visit: https://realtor.com/research/data.
About realtor.com®
Realtor.com®, The Home of Home Search℠, offers an
extensive inventory of for-sale and rental listings, and access to
the information, tools and professional expertise to help people
move confidently through every step of their home journey. It
pioneered the world of digital real estate 20 years ago, and today
is the trusted resource for home buyers, sellers and dreamers by
making all things home simple, efficient and enjoyable.
Realtor.com® is operated by News Corp [Nasdaq: NWS,
NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual
license from the National Association of REALTORS®. For
more information, visit realtor.com®.
Contact:
Lexie Puckett
Holbert: lexie.puckett@move.com
View original
content:http://www.prnewswire.com/news-releases/home-price-cuts-increase-but-still-not-buyers-market-300703855.html
SOURCE realtor.com