RealtyHop Market Health Report: June 2020
In this June 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.
Four of the top five hottest housing markets this month were clustered around the Phoenix metropolitan area. Gilbert, Chandler, Mesa, and Glendale came in 1st through 4th place, while Phoenix itself placed as the 12th hottest market.
1. Gilbert, Arizona was the healthiest housing market in the U.S. this June, as listings required only a 1.74% price drop to be taken off the market. This represented a $9,000 discount off the initial list price.
2. Chandler, Arizona was a close second to Gilbert, as real estate listings required a small 1.82% drop in order to be sold. This equated to a $6,910 discount off of the original list price.
3. Mesa, Arizona increased two spots with a median price drop of 2.02%, an improvement to last month’s median price change of -2.12%. In dollar terms, this represented a $5,900 average price drop per listing.
4. Glendale, Arizona jumped two spots to take the 4th hottest market spot. The median price change per listing in the city was -$5,100, or 2.08% of the initial sales price. This compared with 2.13% last month.
5. Irvine, California rounded out the top five healthiest markets in the country, jumping three spots on our list. Given high housing prices, a steep $20,000 average drop per listing equated to only 2.09% off list price.
1. Detroit, Michigan continued to be the coldest market in the country for home sellers. While real estate listings required strong discounts in order to be sold, the city did see an improvement compared to last month. This June, the average listing in Detroit required a 7.41% discount in order to be sold, compared with 8.33% last month.
2. Cleveland, Ohio was again a difficult market for home sellers, taking the second coldest spot. Listed real estate in Cleveland required a $6,100 median discount in order to be taken off the market, or about 6.83% off the initial list price.
3. Buffalo, New York remained unchanged as the third coldest market in the country. Real estate in the city required a median $10,000 price drop to be sold, equating to a 6.67% discount off list price.
4. San Francisco, California made moves this month, dropping six places to take 97th place on our list. Bay Area real estate has seen a cooling in recent months, which has already shown in the rental market. Real estate required a median price drop of $83,000, or 4.98% off list price, in order to be sold or taken off the market.
5. Newark, New Jersey saw listings require a 4.82% price drop, or $17,000 in dollar terms, in order to be sold or taken off the market. This was however an improvement compared to last month’s 5.56% figure.
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.