Markets Where Sellers Are Cutting Prices

In some markets around the country, sellers are beginning to give buyers more choices as well as negotiating power by cutting their home prices.

Normalization Beginning to Creep into Housing Market

Let’s not be delusional…home prices continue to be up by double-digits in most parts of the country.  The national median list price hit $385,000, an increase of +10% y/y, in July.  And bidding wars are still rampant.

BUT, some cities in the country are showing an increase in the number of homes with price cuts.

Realtor.com’s chief economist George Ratiu said, “For buyers, (this) trend holds the promise of a less frenzied market, with more choice and better prices.”

Price Cuts Typical in Healthiest Housing Markets

The share of listings with price cuts usually ranges from 10%-20%. Sometimes price cuts point to sellers missing the mark on pricing their listing in the first place.  Sometimes price cuts happen seasonally, most typically from midsummer to midfall, when a buyer hasn’t yet stepped up to the plate.  Sometimes price cuts happen strategically to attract more attention to a listing.

Danielle Hale, chief economist with Realtor.com, said, “Price cuts could signal a turning point in the market, they may also just be a sign of sellers getting ahead of buyers in pricing.  There seems to be some markets where it’s a local custom to price real estate that way.”

10 Cities Where Still Hot Markets Are Seeing Price Cuts

1. Des Moines IA
   1. Median home price in July – $193,050
   2. Percentage of listings with price cuts – 32%
2. Midland TX
   1. Median home price in July – $330,050
   2. Percentage of listings with price cuts – 28%
3. Toledo OH
   1. Median home price in July – $117,050
   2. Percentage of listings with price cuts – 26%
4. Metairie LA
   1. Median home price in July – $359,050
   2. Percentage of listings with price cuts – 24%
5. Philadelphia PA
   1. Median home price in July – $289,050
   2. Percentage of listings with price cuts -22%
6. Portland OR
   1. Median home price in July – $550,050
   2. Percentage of listings with price cuts – 20%
7. Anchorage AK
   1. Median home price in July – $315,050
   2. Percentage of listings with price cuts – 19%
8. Winter Park FL
   1. Median home price in July – 569,050
   2. Percentage of listings with price cuts – 19%
9. Oklahoma City OK
   1. Median home price in July – $250,050
   2. Percentage of listings with price cuts – 19%
10. Peoria IL
    1. Median home price in July – $89,550
    2. Percentage of listings with price cuts – 18%

Thanks to Realtor.com.