RealtyHop Market Health Report: July 2020
In this July 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.
Similar to June, four of the top five hottest housing markets this month were located in the Phoenix metropolitan area. The city of Phoenix itself increased two spots to become the tenth healthiest market in the country.
1. Gilbert, Arizona was the healthiest housing market in the U.S. this July, with a median price change per listing of -1.6%. In dollar terms, this represented a $7,000 discount off of the initial offer price for a listing to be sold.
2. Chandler, Arizona was again the second healthiest market in the country this month. Real estate listings in the city required only a 1.72% discount in order to be sold or taken off the market, equating to $6,112 in dollar terms.
3. Henderson, Nevada increased four spots to take position as the third healthiest market this July. The average listing saw a $9,000 price drop to be taken off the market, which represented a 1.96% discount. This was an improvement compared to 2.1% last month.
4. Mesa, Arizona dropped one spot this month, but remained strong with a median price change from list to sale of -2.0% . This equated to a $5,100 median discount per listing.
5. Glendale, Arizona rounded out our top five, dropping one spot to take fifth place. The median price change per listing in the city was -$5,100, or a 2.01% discount off of initial list price.
The coldest markets this July remained similar to last month, with the exception of Laredo, Texas which entered the top five.
1. Detroit, Michigan continued to be the toughest market in the country for home sellers. The average real estate listing required a $5,450 discount in order to be taken off the market, or roughly 7.26% of the initial list price. This was a slight improvement on last month’s statistic of 7.41%, however.
2. Cleveland, Ohio was the second coldest market this July. Real estate in the city saw a median 5.9% discount from list to sale, representing a $5,500 drop in dollar terms. July’s number was an improvement compared to last month at -6.83%.
3. Buffalo, New York remained unchanged as third place this month. Real estate in the city required a $10,000 price drop in order to be taken off the market, equating to a 5.38% discount off list price.
4. San Francisco, California was the fourth coldest market for the second month in a row, coming off a significant drop two months ago in market health. The average real estate listing in SF required an $80,244 discount in order to be taken off the market, equating to a 5% drop from list price.
5. Loredo, Texas decreased one spot on list to become the fifth coldest housing market. The median price change per listing in Laredo was $11,500, or a 4.43% discount per listing in order to be sold.
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.