RealtyHop Market Health Report: September 2020
In this September 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 continued to be the hottest housing market in the country as real estate listings only required a 1.77% price drop in order to be sold. In dollar terms, this constituted a $10,000 median drop per listing.
2. Chandler, Arizona remained the second hottest housing market this September. Chandler’s market was strong, with properties requiring only a 1.89% price drop in order to be taken off the market.
3. Chesapeake, Virginia moved up one spot to become the third hottest market, overtaking Henderson, NV. On average, listings in Chesapeake saw a -2.03% price change to be sold, equating to a $5,300 discount in dollar terms.
4. Henderson, Nevada saw its market health slightly decline over the month, with listings requiring a 2.04% drop to be sold. This was a deeper discount compared to the 1.98% seen last month. Despite this, Henderson remains a solid market and places as the fourth healthiest market in the U.S. this month.
5. Plano, Texas rounded out the five hottest housing markets, dropping one spot on our list this month. The city’s $5,550 average price drop per listing equated to only 2% of initial sales price.
1. Detroit, Michigan once again was the coldest housing market in the U.S. this month. The city saw the average listing require a $7,000 price drop in order to be sold, representing a 6.88% discount off of the initial list price.
2. Buffalo, New York was the second coldest market this September. Home sellers in the city had to discount their properties an average of $10,000 per listing, or about 5.29% off the initial asking price, to sell.
3. Cleveland, Ohio saw real estate require a 6% price drop in order to be taken off the market, a steeper discount relative to last month’s 5.26%. In dollar terms, this equated to an average of $6,000 off per listing.
4. San Francisco, California remained the fourth coldest market in the country. Home sellers, on average, had to discount listings by $71,500 in order to sell, representing a 5% median price drop per listing.
5. Milwaukee, WI rounds out the coldest markets in fifth place, dropping one spot on our full list. The average listing in Milwaukee required a $8,050 price drop in order to be sold, equating to 4.05% off of the initial list price.
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.