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 — 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
1. Henderson, NV remained the hottest housing market this month. On average, properties in the city required a price drop of 2.23%, or $10,000, per listing to sell.
2. Chandler, AZ increased one spot as the second hottest housing market in the nation. Homebuyers would have to lower the asking price by 2.27%, to attract buyers.
3. Garland, TX jumped two spots to become the third hottest city sales-wise in May. For sale homes in the city required a 2.28% price reduction or $8,100 on average to be sold.
4. Gilbert, AZ dropped two spots this month as the fourth hottest housing market this May. Listings on average required a 2.29% price cut to sell in the city.
5. Irving, TX rose one spot and rounded the top five hottest housing markets in the U.S. Properties on the market required a price reduction of 2.30% or $9,250 to be taken off the market.
The 5 Coldest Housing Markets
1. Detroit, MI continued to be the coldest housing market in the U.S. For-sale listings required, on average, a 9.09% price reduction to sell. This number is slightly more drastic than in April.
2. Oakland, CA dropped three spots and became the second coldest housing market in May. Listings in the city required a price drop of $60,000 or 7.68% to be sold.
3. Newark, NJ fell four spots and landed as the third coldest housing market this month. Homesellers would have to lower the asking price by 6.53% to attract buyers.
4. Buffalo, NY remained the fourth coldest housing market among the top 100 U.S. cities. In Buffalo, for-sale listings experienced on average a 6.06% price reduction per listing this month.
5. Cleveland, OH improved two spots and closed out our five coldest housing markets this May. Homes for sale in the city required a price adjustment of 5.89% or $5,100 per listing to be sold.
Notable Changes this May
Lincoln, NE rose nine spots and became the 48th hottest market in the U.S. Thanks to strong homebuying demand, the real estate market in Lincoln is increasingly competitive. Properties in Lincoln saw an average of $6,000 or a 3.12% price cut per listing this May.
Tampa, FL jumped 8 spots this May to become the 29th hottest housing market among the 100 most populous U.S. cities. On average, for-sale homes in the city required only a price reduction of 2.80% from the original asking price to be taken off the market.
Glendale, AZ continued to be one of the most competitive housing markets in the nation. In May, Glendale rose eight spots on our market health ranking and was the 17th hottest city. Sellers would only need to lower their asking by 2.67% to attract offers.
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.