Among the many indicators of a housing market shifting to favor buyers is when the final sales price is below the home sellers’ original list price. In a sellers’ market, buyers typically pay full price and sometimes more than the list price if they must participate in a bidding war.
The first National Knock Deals Forecast from Knock, a home trade-in company that assists repeat home buyers by purchasing their new home and then selling their current home, found 62 percent of homes in the top 45 largest metro areas sold for an amount below their original list prices this year. More than half of those homes sold for an amount that was 2 percent or more below the initial list price.
The five markets where buyers found the most discounts were Miami, New Orleans, Chicago, Houston and Tampa. While the average discount from list price to sales price was 1.4 percent nationally, in Miami the discount was 4.4 percent.
The Washington region was ranked 38 out of 45, with only 51 percent of homes selling below the original list price. The average discount on homes in the area was 0.75 percent.
According to Knock’s analysis, Washington is likely to rank 40 out of 45 metro areas in 2019. Among the top markets where Knock anticipates buyers will find sellers dropping their prices are Miami, Houston, Chicago, Jacksonville and New Orleans.
For the full report, click here.