SAN FRANCISCO, Oct. 11, 2018 /PRNewswire/ -- The share of home
listings with a price cut grew to its highest level since 2014,
according to a new analysis from Trulia®, a home and neighborhood
site for home buyers and renters. In August
2018, 17.2 percent of U.S. listings had a price cut, up from
16.7 percent a year ago.
For much of the first half of 2018 the share of listings on
Trulia with a price cut was largely unchanged from 2017, before
shooting up in July and August. Coupled with home price growth that
has begun to slow, and inventory levels that are creeping back up
in some places, a higher rate of price cuts could be a critical
third confirmation that things may finally be shifting in buyers'
favor.
"Buyers should be encouraged by the signals we're seeing in the
market," Trulia Housing Economist Felipe
Chacon. "But not all buyers will benefit equally, and it
pays to do research on your preferred neighborhood. Price
reductions typically aren't uniformly spread out across a given
city – some neighborhoods might have a lot of listings with a
reduced price, others may have none. Our research shows that price
cuts are much more prevalent in higher-cost neighborhoods, so
budget-conscious buyers may have some trouble finding a
bargain."
Of the top 100 metros, 63 had a higher share of listings with a
price cut this August than last August – and some of the priciest
and/or fastest-growing markets experienced the biggest jump. In
fast-moving Las Vegas, the share
of listings with a price cut rose from roughly one-in-eight a year
ago (12.6 percent) to more than one-in-five currently (20.8
percent) – the largest percentage-point jump among all metros
analyzed. In San Jose, where the
median home is worth more than $1.2
million and home values are growing more than 20 percent
year-over-year, the share of listings with a price cut in August
more than doubled compared to August
2017.
Better Bargains in Expensive Neighborhoods
While increasing price reductions is welcome news for most, not
all home buyers are likely to benefit equally. To run our analysis
at the neighborhood level, we examined all listings in a given area
over the past 12 months (Sept 2017 –
Aug 2018) and calculated the percent
of these listings that had at least one price reduction over the
course of the year.
In 79 of the largest 100 metros, a higher share of homes listed
in more-expensive neighborhoods are experiencing price reductions
than those listed in less expensive areas. In Camden, N.J., 21.5 percent of listings in the
most expensive neighborhood of Springdale had a price cut; while in
Bergen Square, one of Camden's
least-expensive neighborhoods, just 8.6 percent of listings had a
price cut. Similarly, Raleigh
N.C.'s, more expensive Glenwood and Five
Points neighborhoods have seen 18.9 percent and 16.7 percent
of their listings go through at least one price cut over the past
12 months; while the less expensive areas of South Raleigh and Southeast Raleigh only saw 5.8 percent and 6.7
percent of listings with a price cut.
Size of Price Cuts Continue to Shrink
Although we're seeing more price cuts nationwide, the reductions
themselves are getting smaller. For the 12 months ending
August 2018, the median price
reduction nationwide knocked 2.6 percent off the listing price.
This has been declining steadily since 2012, when the median price
reduction was 4 percent. The median value of a price reduction
today is less than the median price reduction at the outset of the
recovery in 97 of the 100 largest metros analyzed.
The smallest price cuts today, at just 1.3 percent at the
median, can currently be found in San
Antonio. The largest price drops are found on homes in
San Francisco and Detroit, where listings that go through a
price reduction see a median drop of 4.6 percent and 4.1 percent,
respectively.
Metros With The
Largest Swings in Price Cuts YoY
|
Rank
|
Geography
|
% of Listings
with at Least
One Price
Reduction In
the Month of
Aug
|
Percentage
Point
Change in
Reductions
|
Estimated Home
Values
|
Aug
2018
|
Aug
2017
|
2017-2018
|
Aug
2018
|
2017-
2018
Change
|
|
National
|
17.2%
|
16.7%
|
0.5
|
$216,700
|
6.5%
|
1
|
Las
Vegas-Henderson-Paradise, NV
|
20.8%
|
12.6%
|
8.1
|
$273,094
|
15.3%
|
2
|
San
Jose-Sunnyvale-Santa Clara, CA
|
15.5%
|
7.6%
|
7.9
|
$1,285,620
|
21.5%
|
3
|
Seattle-Bellevue-Everett, WA
|
20.0%
|
12.0%
|
7.9
|
$567,612
|
8.3%
|
4
|
Anaheim-Santa
Ana-Irvine, CA
|
21.6%
|
15.8%
|
5.7
|
$726,727
|
5.4%
|
5
|
San Diego-Carlsbad,
CA
|
26.4%
|
21.0%
|
5.4
|
$592,325
|
6.1%
|
6
|
Riverside-San
Bernardino-Ontario, CA
|
18.8%
|
13.6%
|
5.2
|
$364,313
|
7.3%
|
7
|
Los Angeles-Long
Beach-Glendale, CA
|
16.5%
|
12.1%
|
4.4
|
$612,809
|
6.3%
|
8
|
Sacramento--Roseville--Arden-Arcade, CA
|
22.0%
|
17.7%
|
4.3
|
$404,082
|
5.2%
|
9
|
Tacoma-Lakewood,
WA
|
19.9%
|
15.8%
|
4.1
|
$336,529
|
10.8%
|
10
|
Oakland-Hayward-Berkeley, CA
|
13.6%
|
9.5%
|
4.1
|
$766,886
|
7.9%
|
91
|
St. Louis,
MO-IL
|
16.5%
|
18.3%
|
-1.8
|
$163,012
|
5.8%
|
92
|
Raleigh,
NC
|
17.9%
|
19.7%
|
-1.8
|
$258,692
|
6.0%
|
93
|
Pittsburgh,
PA
|
14.0%
|
15.8%
|
-1.8
|
$142,953
|
7.5%
|
94
|
Columbia,
SC
|
17.0%
|
18.8%
|
-1.8
|
$136,586
|
5.7%
|
95
|
Wichita,
KS
|
15.8%
|
18.3%
|
-2.5
|
$129,331
|
4.8%
|
96
|
Montgomery
County-Bucks County-Chester County, PA
|
17.8%
|
20.4%
|
-2.6
|
$321,754
|
4.2%
|
97
|
Austin-Round Rock,
TX
|
17.7%
|
20.6%
|
-3.0
|
$300,911
|
6.4%
|
98
|
Oklahoma City,
OK
|
19.7%
|
23.2%
|
-3.5
|
$143,942
|
3.3%
|
99
|
Denver-Aurora-Lakewood, CO
|
21.0%
|
24.7%
|
-3.6
|
$401,539
|
6.9%
|
100
|
San Antonio-New
Braunfels, TX
|
20.2%
|
24.0%
|
-3.8
|
$188,345
|
6.1%
|
Note: Click
here for the full data
|
For more information, please check out Trulia's Latest Price
Cuts Report for a more detailed analysis.
About Trulia
Trulia's mission is to build a more neighborly world by helping
you discover a place you'll love to live. Homebuyers and renters
use Trulia's website and suite of mobile apps to get a deeper
understanding of homes and neighborhoods across the U.S. through
personalized recommendations, insights sourced straight from
locals, and 34 neighborhood map overlays that offer details on
commute, reported crime, schools, nearby businesses, and more.
Founded in 2005, Trulia is based in San Francisco, and owned
and operated by Zillow Group, Inc. (NASDAQ: Z and ZG). Trulia is a
registered trademark of Trulia, LLC.
For further information:
pr@trulia.com
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SOURCE Trulia