In this February 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 — 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 each major city across the U.S. right now.
The 5 Hottest Housing Markets
1. Henderson, Nevada became the hottest housing market this month for the first time in our report. The city jumped two spots, led by strong buyer demand and a low 1.93% average price drop per listing.
2. Chandler, Arizona’s market, while no longer first, remained strong this February. Real estate listings experienced an average $10,000 price drop in order to sell, equating to a 1.99% discount from the original list price.
3. Gilbert, Arizona dropped one spot to become the third hottest market this month. Listings in the city required an average $10,000 price drop to sell, representing a 2.04% reduction.
4. Irving, Texas placed in our top five housing markets for the first time, as the city increased two spots. The city’s average price reduction per property was $6,000, representing a low 2.14% discount off of the initial list price.
5. Irvine, California rounded out our top five markets, sliding one spot on our ranking. Irvine’s real estate market remains healthy; the city experienced an average price reduction of 2.16% per listing, equating to roughly $21,000 in dollar terms.
The 5 Coldest Housing Markets
1. Detroit, Michigan remained the coldest housing market in the country this February. Listings saw an average price reduction of $5,100, or about 6.85% off of list price. This was in line with last month’s 6.94% average price reduction.
2. Buffalo, New York was the second coldest market, with real estate needing an average $10,000 price drop in order to sell. This equated to a 5.56% reduction off the original list price.
3. Newark, New Jersey fell one place on our ranking to take the third coldest spot. Real estate in Newark required an average $31,000 reduction to be sold this month, equating to a 5.37% price cut per listing.
4. Laredo, Texas saw an improvement compared to last month — up one spot from January. Real estate in the city remains a buyers market, with the average listing seeing a 5.31% price drop in order to sell.
5. Cleveland, Ohio remained the fifth coldest market this month, as listings required a steep 5.15% price reduction in order to sell. This represented a $5,000 average price drop per property.
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 were 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.