RealtyHop Market Health Report: January 2020
In this January 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 again remained atop our list, requiring only a 1.61% decrease in asking price for a listing to be sold. While this was a higher drop compared with last month, Gilbert still remains the strongest housing market in the U.S. given its strong supply and demand dynamics.
2. Chandler, Arizona took second place just behind its neighboring city Gilbert. Similar to Gilbert, Chandler has experienced rapid population growth which has led to greater demand for housing. Listings in the city saw a median price drop of 1.67% over the past month.
3. Stockton, California increased one spot to take third place this January, overtaking Mesa, Arizona. Net migration from the San Francisco peninsula outward has contributed to this dynamic. The city saw the average listing require only at $5,451 drop in initial asking price to be taken off the market.
4. Mesa, Arizona continued to be healthy this January, aligning with the trend of the rest of Maricopa County. The city required a median price change of only $5,100, or a low 1.89% of total home sales price.
5. Plano, Texas cracked the top five hottest housing markets this month, increasing two spots over last month’s position. Listings required a 1.92% price drop in order to be taken off the market, or about $5,100 off of initial asking prices.
1. Detroit, Michigan was again the least healthy housing market in the U.S. this January, with listing prices requiring steep discounts in order to be sold. The median price change of an average listing was $5,000, or 8.45% of total median home value.
2. Cleveland, Ohio overtook Buffalo to take the second coldest spot, as asking prices required greater drops to sell compared with last month. The average listing in the city saw a 6.68% decrease in asking price to be taken off of the market.
3. Buffalo, New York saw a similar buyer’s market compared with the start of December. The average listing in the city required a median price change of -$8,950 to be taken off the market, or 5.8% of total listing price.
4. San Francisco, California has recently seen its for-sale housing market cool from the incredible rise in prices over the past decade. The average listing in San Francisco this past month required an $86,000 price drop to be delisted, or about 5.75% of total asking price.
5. Newark, New Jersey remained stable this January as the fifth coldest housing market in the country. Real estate in the city did however require a slightly lower price drop to sell compared with last month. The average listing saw a -$17,500 price change to be taken off of the market, or 5.18% of initial listing 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