RealtyHop Market Health Report: August 2020
In this August edition of the RealtyHop Market Health Report, we investigate the strength of the 100 largest housing markets across the United States. To do this, we analyzed over 300,000 real estate listings on RealtyHop to calculate the “market health” of each city; specifically, the difference in price between when real estate listings are first put on the market and when they are eventually sold. In theory, stronger markets should exhibit fewer price drops and smaller percentage discounts, while weaker markets should show the opposite. Our results explore this metric and shed light on the market health of cities across the U.S. right now.
1. Gilbert, Arizona was the hottest housing market again this month, with a median price change per listing of -1.67%. In dollar terms, this equated to an average $7,800 discount off of initial sales price for each property.
2. Chandler, Arizona was the second hottest housing market, trailing slightly behind nearby Gilbert. Housing listings in the city required, on average, a 1.75% discount in order to be sold or taken off the market. This statistic represented a $8,000 price drop per listing.
3. Henderson, Nevada remained in third place, as real estate listings only required a 1.98% average discount, or $9,603, in order to be sold or taken off the market.
4. Chesapeake, Virginia placed as the fourth healthiest market this August, jumping two spots since last month. Listings in the city saw an average -1.99% price drop in order to be sold, equating to $5,100 off of initial list price.
5. Mesa, Arizona rounded out the five hottest housing markets, dropping one spot on our list this month. The city’s $5,550 average price drop per listing equated to only 2% of initial sales price.
1. Detroit, Michigan was the coldest housing market this August, as real estate in the city required a steep 7.15% average discount in order to be sold or taken off the market. This drop equated to $5,750 in dollar terms.
2. Buffalo, New York moved up one spot to become the second coldest market. The city’s 5.26% average discount meant that sellers had to discount listings $10,000 in order to sell. This was a slight improvement on last month’s 5.38% average price discount.
3. Cleveland, Ohio saw real estate require a 5.26% discount in order to sell. This represented a $6,000 average drop in dollar terms.
4. San Francisco, California was the fourth coldest market this August. Real estate in SF saw listings require a $75,000 price drop, or 4.86% of list price, in order to sell. This was an improvement on July’s average price drop of 5%.
5. Pittsburgh, PA became the fifth coldest market this month, after dropping one spot on our ranking. Real estate required a 4.30% price drop in order to sell, equating to $10,000 off list price. This compared to 3.86% last month.
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
Cities are ranked in descending order by Median Percentage Price Change.