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 — 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
- Chandler, Arizona came in as the hottest housing market the month, taking back the top spot from Henderson, NV. The city required only a 1.96% average price reduction per listing to sell.
2. Henderson, Nevada fell one spot as the second hottest housing market for the month of March. Listings in the city required a 2.12% price adjustment to sell, equating to a $7,501 reduction in dollar terms.
3. Gilbert, Arizona remained strong this month. On average, home sellers only had to cut prices by 2.14% to sell, or about $10,000 per listing in dollar terms.
4. Irvine, California rose one spot this month, thanks to tight inventory and increased buyer interest. Properties on average required a 2.26% price reduction, or $20,950, to sell.
5. Aurora, Colorado jumped four spots this month to close out our top five. The residential real estate market has become increasingly competitive in Aurora. Sellers only needed to reduce asking prices by 2.32%, or $7,750, to attract buyers.
The 5 Coldest Housing Markets
1. Detroit, Michigan remained the coldest housing market in March. Real estate listings saw an average of 8.16% price reduction per listing, equating to a $6,000 drop in dollar terms.
2. Newark, New Jersey fell one spot this month to become the second coldest housing market in the country. Listings required a $28,000 price cut, or 6.02%, in order to be sold.
3. Buffalo, New York improved one spot to become the third coldest housing market. Residential listings required a $10,000 price adjustment, or 5.56% off of the initial list price, to sell.
4. Cleveland, Ohio fell one spot this March, with for-sale properties requiring a 5.32% price reduction to be sold or taken off the market. This translated to a -$10,000 average price change per listing.
5. Laredo, Texas rose one spot this month, despite being the fifth coldest housing market in the country. On average, sellers would have to lower their asking price by $9,250, or 5.23% of the asking price, to attract buyers.
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 data points 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.