SEATTLE, July 9, 2020 /PRNewswire/ -- In yet another
sign that home sellers have the advantage in the current housing
market, a new Zillow® analysis shows the share of listings with a
price cut is down compared to last year. Only 4.1% of homes on the
market as of June 27 had a price cut,
compared to 5.6% at this time last year.
Typically the share of listings with a price cut increases as
the home selling season continues, rising steadily from February to
October. This year however, price cuts flatlined from February to
March, with around 4% of listings offering a price cut -- atypical
behavior compared to previous years -- and then dropped to annual
lows in April at 2.9%. Since then, more homes saw price cuts,
though the share remains well below what would be expected in a
normal year.
A Zillow survey in April1 showed the majority of
sellers (59%) assumed the coronavirus pandemic would result in a
buyers market. But high buyer demand coupled with extremely tight
inventory (down 21% YoY) has resulted in homes flying off the
market at record pace and fewer price cuts.
"This may be our strongest signal yet that sellers have the
upper hand in the housing market today -- and they know it," said
Jeff Tucker, economist at Zillow.
"Many buyers still think they can make lowball offers and score a
great deal in the midst of today's economic turbulence, but sellers
are holding firm on list prices. For-sale inventory has been
setting new record lows this spring, so sellers know that buyers
are starved for options. Despite the lack of price cuts, sellers
are still able to sell their homes faster than they did this time
last year."
Out of the 50 largest U.S. metropolitan areas, New York (2.8%), Miami (3.3%) and Riverside (3.8%) have the lowest share of
listings with a price cut -- with New
York's level lower than what's normally seen in December.
However, those shopping in Denver
(9.1%), Indianapolis (7.4%),
and Chicago (6.9%) will see
the largest share of price cuts.
The typical home value in the U.S. is $251,598 up 4.3% compared to a year ago. Zillow's
most recent home price forecast expects a slight 1.8% drop in
prices from April to October 2020,
with recovery through 2021.
Metropolitan
Area*
|
Share of
Listings With
Price Cut - June
2020**
|
Share of
Listings With
Price Cut -
June 2019***
|
United
States
|
4.1%
|
5.6%
|
New York,
NY
|
2.8%
|
5.3%
|
Los Angeles-Long
Beach-Anaheim, CA
|
4.5%
|
6.5%
|
Chicago,
IL
|
6.9%
|
9.2%
|
Dallas-Fort Worth,
TX
|
6.2%
|
8.5%
|
Philadelphia,
PA
|
5.3%
|
7.2%
|
Houston,
TX
|
5.8%
|
7.7%
|
Washington,
DC
|
4.8%
|
7.0%
|
Miami-Fort
Lauderdale, FL
|
3.3%
|
4.4%
|
Atlanta,
GA
|
5.1%
|
7.5%
|
Boston, MA
|
5.1%
|
7.1%
|
San Francisco,
CA
|
4.7%
|
5.8%
|
Detroit,
MI
|
6.3%
|
8.3%
|
Riverside,
CA
|
3.8%
|
6.2%
|
Phoenix,
AZ
|
4.9%
|
7.8%
|
Seattle,
WA
|
5.6%
|
8.1%
|
Minneapolis-St Paul,
MN
|
5.0%
|
6.7%
|
San Diego,
CA
|
5.2%
|
8.1%
|
St. Louis,
MO
|
5.5%
|
6.8%
|
Tampa, FL
|
6.5%
|
8.0%
|
Baltimore,
MD
|
6.0%
|
8.1%
|
Denver, CO
|
9.1%
|
10.9%
|
Pittsburgh,
PA
|
6.2%
|
6.5%
|
Portland,
OR
|
5.3%
|
8.6%
|
Charlotte,
NC
|
5.9%
|
8.0%
|
Sacramento,
CA
|
6.4%
|
8.1%
|
San Antonio,
TX
|
5.2%
|
7.2%
|
Orlando,
FL
|
5.9%
|
7.4%
|
Cincinnati,
OH
|
6.8%
|
8.4%
|
Cleveland,
OH
|
4.7%
|
5.3%
|
Kansas City,
MO
|
5.8%
|
7.4%
|
Las Vegas,
NV
|
5.8%
|
9.0%
|
Columbus,
OH
|
6.6%
|
9.3%
|
Indianapolis,
IN
|
7.4%
|
9.1%
|
San Jose,
CA
|
5.5%
|
7.8%
|
Austin, TX
|
6.2%
|
8.6%
|
*Table organized
by market size
|
**Data from the
week ending in June 27, 2020
|
***Data from the
week ending in June 29, 2019
|
About Zillow
Zillow, the top real estate website in
the U.S., is building an on-demand real estate experience. Whether
selling, buying, renting or financing, customers can turn to
Zillow's businesses to find and get into their next home with
speed, certainty and ease.
In addition to for-sale and rental listings, Zillow Offers buys
and sells homes directly in dozens of markets across the country,
allowing sellers control over their timeline. Zillow Home Loans,
our affiliate lender, provides our customers with an easy option to
get pre-approved and secure financing for their next home
purchase.
Millions of people visit Zillow Group sites every month to start
their home search, and now they can rely on Zillow to help them
finish it — with the same confidence, ease and empowerment they've
come to expect from real estate's most trusted brand.
Launched in 2006, Zillow is owned and operated by Zillow Group,
Inc. (NASDAQ:Z and ZG) and headquartered in Seattle.
Zillow and Zillow Offers are registered trademarks of Zillow,
Inc.
1Survey results come from polling conducted by Zillow
Group's Behavioral Science and Population Science Teams. Data was
collected by Zillow Group using CloudResearch's Prime Panels
platform. It is from a survey of 10,696 U.S. adults recruited and
interviewed between April 10, 2020
and April 27, 2020. Respondents were
recruited from multiple general population Internet respondent
panels of U.S. adults from the contiguous United States – the sample does not include
respondents from Alaska or
Hawaii. To promote the
representativeness of the estimates, the sample data was weighted
to align with key demographic benchmarks observed in the target
population. For more survey results, contact press@zillow.com
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SOURCE Zillow