1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
PRNewswire
PRNewswire
Articles 

Fewer Sellers are Cutting Prices in Tight Housing Market

July 09, 2020 | About:

A lower-than-normal share of listings with a price cut is another signal the market has tilted in favor of sellers

- Only 4.1% of current listings have had a price cut, compared to 5.6% at the same time last year.

- The largest 35 metropolitan areas have all seen fewer listings with price cuts now compared to a year ago -- with New York, Miami and Riverside metros seeing the lowest share.

- High buyer demand coupled with record low inventory -- down 21% from last year -- is keeping home prices steady.

PR Newswire

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 [email protected]

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/fewer-sellers-are-cutting-prices-in-tight-housing-market-301090574.html

SOURCE Zillow


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by PRNewswire


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)