RealtyHop Market Health Report: December 2019
In this December 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 would 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 retained its spot as the hottest housing market in the country, as listings on average required only a 1.57% discount to be sold. Gilbert’s amenities and family friendly atmosphere have made it a particularly strong city for net positive migration. In fact, Maricopa County, which includes Phoenix, Mesa, Chandler, Scottsdale, and Tempe, has led the nation in population growth for the past three years running.
2. Chandler, Arizona placed second on our list, seeing an average price drop of $6,000, or 1.69% of total home value, in order to be taken off the market. While still very healthy, price discounts in the city were deeper this month, compared with November’s statistic of -1.44%.
3. Mesa, Arizona rounds out the top three healthiest markets, jumping four spots compared with last month. Property listings in the city required only a $5,100 price discount to sell, equating to 1.89% of total home value.
4. Stockton, California fell one spot to fourth place, seeing a slim 1.9% median price drop over the past month. The Central Valley continues to be desirable for those seeking refuge from high real estate prices in the Bay Area.
5. Glendale, Arizona increased three spots to become the fifth hottest market this December. Similar to nearby cities in Arizona, Glendale properties required very small discounts from initial offering to sell; specifically, an average of 1.92% drop per listing.
1. Detroit, Michigan was the least healthy housing market in the country this December. On average, a home for sale in the city required a $5,000 discount, or 8.33% of total home value, in order to be sold or taken off the market. On an optimistic note, this statistic was an improvement on last month’s 8.73% median price cut.
2. Buffalo, New York was the second coldest market in the country, with the average listing requiring a $9,100 discount, or 5.89% of the total home price, in order to sell. This was a slight improvement on November’s metric of 6.16%.
3. Cleveland, Ohio saw listings over the past month require a $5,097, or 5.88%, discount from initial asking price to sell. Cleveland has seen housing prices start to fall back after years of a strong upward trend.
4. San Francisco, California was again the fourth coldest housing market in the country this month. The average listing required a drop of 5.63% in order to be taken off of the market. Despite this, San Francisco continues to be the most expensive housing market of any city in the United States.
5. Newark, New Jersey dropped three spots to take the fifth coldest market spot, with the average listing requiring a $20,000 discount, or 5.28% of the initial asking price, in order to sell.
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