RealtyHop Market Health Report: May 2020
In this May 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 was the healthiest housing market in the U.S. this past month, as real estate listings required only a 1.78% drop in price to be taken off the market. This change represented a $9,000 discount on the initial list price.
2. Chandler, Arizona fell from the top spot despite its real estate market remaining stable over the month. The median price drop for Chandler was 1.84%, compared with 1.82% last month. Despite not holding the top spot, Chandler remains one of the healthiest markets in the country.
3. Colorado Springs, Colorado saw listings this May require a 2.09% drop in order to be taken off the market, equating to $10,000 of the total initial asking price. This was a slightly larger discount compared to last month’s figure of 2.04%.
4. Plano, Texas increased one spot to retake the fourth hottest spot. Listings in Plano required a 2.11% price drop in order to be taken off the market, slightly better than last month’s 2.15%. This constituted a $10,000 discount from the initial sales price.
5. Mesa, Arizona fell to the fifth hottest housing market spot this May. Mesa real estate required a $7,850 discount on average to be sold, equating to a price drop of 2.12%.
1. Detroit, Michigan continues to be the coldest market for home sellers in the country. Real estate listings required steep discounts in order to be sold, with the median price drop in the month coming in at 8.33%. This equated to a $5,000 discount off of initial list price.
2. Cleveland, Ohio retained the second coldest spot, as the average property in Cleveland required a significant 7.01% discount in order to be sold or taken off of the market.
3. Buffalo, New York became the third coldest market, despite real estate requiring slightly lower cuts compared to last month. Listings this month saw a median price drop of 5.77%, compared with 5.81% over the month prior. Buffalo’s price change per listing was -$10,000.
4. Newark, New Jersey saw listings require a significant 5.56% drop in order to be sold, equating to a $20,000 discount off of the starting sales price. This was an improvement compared to last month’s 6.99% figure.
5. San Jose, California rounded out the five coldest markets, as listings in the city required a 5.16% price drop in order to be sold. This discount equated to a -$49,000 median price change given San Jose’s expensive real estate prices.
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.