RealtyHop Market Health Index: November 2019
In our first ever RealtyHop Market Health Index, we investigate the strength of each of the 100 largest housing markets across the United States. To do this, we analyzed over 300,000 real estate listings on RealtyHop to identify the “market health” of each city based on the median change in asking prices over the past month. In theory, a strong market should exhibit fewer price drops and smaller discounts, while weaker markets would show the opposite. Our results explore this metric of housing market health across the country.
1. Gilbert, Arizona was the strongest housing market in the country this November, experiencing minor price drops and slim discounts. The median price change per listing was $5,000, representing only a 1.41% discount on the total initial asking price. Gilbert remains a great family friendly city with an abundance of amenities, leading to strong housing demand in the area.
2. Chandler, Arizona placed a close second to Gilbert, seeing a similar seller’s market to its neighboring city. The average price change per listing of -$5,100 over the course of a home’s sales lifecycle represented a small 1.44% discount on total price.
3. Stockton, California took third place on our list, seeing only a -1.56% change in listing prices before being sold or delisted. Given the meteoric rise in housing prices for the Bay Area, it comes as no surprise that cities in the Central Valley have strengthened in recent years, as residents flee to more affordable housing outside of San Francisco.
4. Anaheim, California placed fourth in market heath, experiencing only a -1.65% change in asking price over a home sales lifecycle. This competitive housing market has remained red hot in recent years, despite a high median home price of $625,000.
5. Aurora, Colorado rounds out our top five hottest markets, as listings over the past month only experienced a 1.85% drop on average before being sold. The city has seen a steady rise in home prices over the past few years and continues to be a seller’s market.
1. Detroit, Michigan tops our list as the coldest housing market in the country this November. On average, a home sales listing needs to discount 8.73% in order to sell. While housing prices in the city have stabilized since the mortgage crisis, lagging migration has contributed to a buyer’s market with low incoming demand.
2. Buffalo, New York saw a strong buyer’s market this November, coming in as the second weakest market. A median price change of -$10,000 constituted a 6.16% discount on the initial sales price advertised.
3. Cleveland, Ohio saw housing prices require a 6% discount to sell. After years of increasing prices, high demand, and an overall seller’s market, Cleveland has started to see prices fall back. This should come as welcome news for potential buyers on the sidelines.
4. San Francisco, California came in fourth place, with a median price drop of 5.63% per listing. However, do not be fooled by this statistic; San Francisco continues to have the most expensive housing market in the nation with a median home price of $1,398,000. The discounts experienced recently can be seen as a softening of the market from the highs seen earlier this year.
5. Oakland, California experienced much of the same effect as its neighbor, San Francisco. The average Oakland listing required a $50,000 discount to sell, constituting a 5.53% discount on total sales price.
The RealtyHop Market Health Index analyzes proprietary data gathered from RealtyHop over the month prior to publication, providing a snapshot of housing market health across the 100 most populous cities in the United States. Price changes are taken from over 300,000 real estate listings on RealtyHop to identify each city’s “market health” based on the change in asking prices over the past month.
To calculate the index, the following datapoints are used:
1) Median home price taken from 300,000 listings on RealtyHop.com over the course of the prior month to publication
2) Median price change per listing: the median amount the asking price per listing changed prior to being sold or taken off the market
3) Median price change as a percentage of total sales price: the percentage of the total home price that the price change represents