Discounted listings are becoming more commonplace, with 38 of the largest 45 U.S. markets seeing an increase in price reductions in December, according to a new report from realtor.com®. The highest number of price reductions on homes was in Charlotte, N.C., where 24 percent of listings were discounted in December, followed by San Jose, Calif. (10 percent); Tampa, Fla. (9 percent); Phoenix (9 percent); and Seattle (8 percent). Further, 40 percent of homes are spending more time on the market, according to realtor.com®’s report.
“Sellers are adjusting their strategies, especially in slowing, pricey markets with growing availability of homes for sale,” says realtor.com® Chief Economist Danielle Hale. “Although buyers may not find a bargain, the price discounts and recently lower borrowing costs may entice upper-tier buyers back into the market. By contrast, entry-level shoppers continue to contend with declining availability of homes for purchase, albeit at a slower rate.”
The sharpest declines in median listing prices were in San Jose and San Francisco, where prices are down 12 percent and 4 percent, respectively. Austin, Texas; Houston; Dallas; Nashville, Tenn.; Charlotte, N.C.; and Jacksonville, Fla., also posted declines. “However, selling prices in some of these markets are not yet reflecting those declines,” realtor.com® notes.
Source: “Housing Market Cooldown Continues as Inventory Increases in December,” realtor.com® (January 2019)
