RealtyHop Market Health Report: October 2020
In this October 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 again the hottest housing market in the country this October, beating out neighboring Chandler. Listings in the city required a low 1.82% price drop in order to be sold, equating to $10,000 in dollar terms. This was slightly higher compared to last month’s 1.77% statistic.
2. Chandler, Arizona remained steady this month, as the $10,000 average price drop per listing represented only a 1.92% reduction from initial list price.
3. Irvine, California increased three spots to become the third hottest housing market. Real estate listings required a small 2.03% reduction in order to sell, equating to $20,000 in dollar terms.
4. Plano, Texas moved up one spot to fourth place, despite similar health to last month. Listings required a $10,000 average price reduction in order to sell, representing only 2.08% off of initial list price.
5. Henderson, Nevada dropped one spot on our hottest markets ranking, as real estate required a 2.09% reduction to sell, up from 2.04% in September. In dollar terms, this represented a $9,100 discount per listing.
1. Detroit, Michigan was the coldest housing market in the U.S. this October. The city saw real estate listings require a steep 7.36% average drop in order to sell, up from 6.88% in September. This represented an $7,200 discount off of the original list price.
2. Buffalo, New York remained the second coldest market, as real estate required a slightly larger 5.56% discount to be sold, compared to 5.29% last month This equated to a $10,000 price drop in dollar terms.
3. Cleveland, Ohio listings required a 5.11% price drop in order to be taken off the market this month, an improvement from September’s 6%. This equated to an average $7,251 discount per listing in dollar terms.
4. San Francisco, California was healthier this October, despite remaining the fourth coldest market. Listings had an average 4.86% discount to be sold, representing $63,000 off the initial list price.
5. Seattle, Washington rounds out the coldest markets list at fifth place, dropping three spots on our overall ranking. Real estate in Seattle saw an average $25,000 drop per listing, equating to 4.17% in percentage terms.
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.