RealtyHop Market Health Report: March 2020
In this March 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. Chandler, Arizona was the hottest housing market in the country this March, as the city saw the lowest price discounts of any on our list. Housing in the city needed only a 1.64% average price drop in order to be taken off the market, equating to $6,000 of the original list price.
2. Gilbert, Arizona while no longer first place, remained a healthy housing market. Listings in Gilbert only required a 1.74% decrease in order to be sold or taken off the market, representing a $9,000 average price drop.
3. Colorado Springs, Colorado entered our top three markets for the first time, increasing one spot since February. Housing listings over the past month required only a $6,000 drop in price, equivalent to 1.9% of the total price. Colorado Springs continues to be a strong option for millennial migration.
4. Plano, Texas was recently ranked as the 3rd most recession proof city in the United States. Given this, it’s no wonder that the city’s housing market also looks healthy. Listings in Plano this month required only a 2.01% decrease from initial asking price in order to be sold or taken off market.
5. Mesa, Arizona alongside neighboring cities Chandler and Gilbert, continues to be a seller’s market. Listings in Mesa saw a $6,600 drop on average to be taken off the market, representing 2.06% of total asking price.
1. Detroit, Michigan was again the coldest housing market in the country, as housing required steep discounts in order to be sold. The median price change of a listing over its lifecycle was -$5,000, representing 8.65% of total list price.
2. Cleveland, Ohio remained unchanged as the second coldest market on our list. The median price change in the city was $5,000, or 6.82% of total list price this March.
3. Newark, New Jersey placed as the third coldest market in the country, displacing Laredo, Texas. Housing listings in Newark saw steep discounts, with an average drop of $12,000, or 6% of total asking price.
4. Laredo, Texas overtook Buffalo to take fourth place, experiencing steeper price discounts compared with February. This month Laredo saw an average price drop of $11,000, or 6.01% of total listing price, compared with a $10,250 drop, or 5.24% of price, last month.
5. Buffalo, New York rounded out our top five coldest markets in the country. Housing listings required a $10,000 price drop to be taken off the market, equating to roughly 5.64% of total list price.
Other Notable Trends
Austin and San Antonio Experience Drop
Austin properties experienced an average price drop of $11,900 this month, equating to 2.74% of initial list price. Compare this to February’s statistics for Austin of a $10,000 drop, or about 2.4% of list price.
San Antonio similarly saw a $6,400 average drop this month, compared with $5,070 last month.
COVID-19 Economic Fallout
It is also worth mentioning the ongoing COVID-19 crisis and how this may impact the national housing market moving forward. While the effect will have not shown directly in this month’s dataset, the economic fallout of the virus will undoubtedly start to surface in the coming months.
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.