Sellers are discounting asking prices below pre-pandemic levels
FRAMINGHAM, Mass., May 14, 2020 /PRNewswire/ -- About one out of four home sellers who listed their homes for sale since the outbreak of the coronavirus pandemic has priced them at discounts below pre-pandemic price levels. The lower prices are creating market conditions that are more friendly to buyers, according to a new analysis of the nation's 30 largest markets by Weiss Analytics.
Homes priced higher than $600,000 are more likely to be discounted than less expensive homes. Sellers of some 37 percent of houses worth over $600,000 have asking prices below their February values, with a median discount of 7.7%. The market share of higher-priced listings that are discounted has increased every week since the pandemic slowed real estate sales in March. New listings for these houses have outpaced sales by 3 to 1.
Markets with the highest percentage of new listings discounted since February are New York (34 percent of new listings), Baltimore (31 percent of new listings), and Los Angeles (30 percent of new listings).
Price discounting less prevalent for lower-priced homes
Homes priced at $200,000 or less have fewer discounted listings, about 30 percent, and the median discount is also lower at 6.3%. Weiss Analytics found that list prices for entry-level properties are supported by tighter supply with new listings exceeding sales at rates of only 1.5 to one.
After 97 straight months of year-over-year gains, first-time buyers and investors have a reprieve, at least temporarily, from monthly price inflation that has made it hard to save for down payments or find profitable rentals.
Pandemic prices help buyers
"These higher discounts for more expensive homes, and current relative strength for lower priced houses is significant, said Allan Weiss, CEO of Weiss Analytics and co-founder of Case Shiller Weiss. "The implosion of the non-QM mortgage market is contributing to softer demand and more discounting by sellers at these higher price levels," said Weiss.
"The future value of entry-level homes faces important uncertainties particularly whether re-opening communities can be sustained so we have an employment recovery. To some degree it is win-win for would-be entry level buyers if prices become more realistic, people maintain their incomes and can borrow to purchase."
The top three markets with the highest average discounts are Pittsburgh (20 percent), Baltimore (10 percent), and San Antonio (10 percent).
Weekly market updates with fresh data
To help owners, buyers, investors, and lenders follow the new market reality, Weiss Analytics will release weekly market updates on the Weiss Analytics site beginning next Wednesday, May 20.
As housing markets evolve, homeowners, agents, and lenders will be able to track individual properties as well as micro-market trends on Weiss Analytics,
About Weiss Analytics
Weiss Analytics provides the next generation of home price indexing, forecasting, and analytics and is the only provider of house-specific repeat sales indexes in the US. Founded by national housing index expert Allan N. Weiss, co-founder of Case Shiller Weiss, Weiss Analytics combines leading industry experience, proprietary analytics, and state-of-the-art significant data computing power to deliver revolutionary products with unprecedented resolution. Weiss Analytics is an independent and trusted information source for home buyers and sellers, real estate professionals, financial institutions, and hedge funds.
Sellers are discounting listings below pre-pandemic levels
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Top 30 markets Week of February 9 to the Week of April
15
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Sales Percentage of new listings Average discount value
volume discounted change
change Sales Price change
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Atlanta-Sandy Springs-Roswell, GA -7.7% 1% -15.2% -6%
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Baltimore-Columbia-Towson, MD -41.7% 1% -15.0% -10%
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Boston-Cambridge-Newton, MA-NH -29.0% 5% -22.8% -6%
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Charlotte-Concord-Gastonia, NC-SC 13.6% -1% -17.1% -5%
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Chicago-Naperville-Elgin, IL-IN-WI -48.7% 2% -38.8% -7%
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Cincinnati, OH-KY-IN -4.5% 5% -12.1% -6%
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Cleveland-Elyria, OH 10.1% 3% -15.5% -7%
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Dallas-Fort Worth-Arlington, TX -9.0% 3% -24.5% -6%
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Denver-Aurora-Lakewood, CO 2.6% 2% -25.5% -4%
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Detroit-Warren-Dearborn, MI 26.6% -1% -64.0% -6%
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Houston-The Woodlands-Sugar Land, TX -69.5% 1% -25.9% -8%
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Kansas City, MO-KS -7.5% 2% -1.4% -7%
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Los Angeles-Long Beach-Anaheim, CA -0.8% 0% -24.2% -5%
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Miami-Fort Lauderdale-West Palm Beach, FL -7.9% 2% -40.9% -6%
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Minneapolis-St. Paul-Bloomington, MN-WI 3.3% 2% 9.1% -6%
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New York-Newark-Jersey City, NY-NJ-PA 15.9% 0% -59.9% -8%
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Orlando-Kissimmee-Sanford, FL -53.9% 1% -25.6% -4%
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Philadelphia-Camden-Wilmington, PA-NJ-DE-MD -14.2% 2% -50.3% -9%
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Phoenix-Mesa-Scottsdale, AZ -38.6% 1% -7.7% -3%
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Pittsburgh, PA -10.1% 7% -69.9% -20%
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Portland-Vancouver-Hillsboro, OR-WA -46.4% 1% 7.1% -5%
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Riverside-San Bernardino-Ontario, CA 8.5% 1% -24.8% -4%
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Sacramento--Roseville--Arden-Arcade, CA -6.4% 0% -13.9% -3%
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San Antonio-New Braunfels, TX -8.4% 0% -15.2% -10%
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San Diego-Carlsbad, CA 5.4% 1% -27.0% -5%
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San Francisco-Oakland-Hayward, CA -1.4% 2% -34.4% -6%
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Seattle-Tacoma-Bellevue, WA -33.7% 2% -9.3% -4%
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St. Louis, MO-IL 15.7% 1% -1.2% -9%
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Tampa-St. Petersburg-Clearwater, FL 7.2% 1% -32.1% -5%
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Washington-Arlington-Alexandria, DC-VA-MD-WV -42.1% 1% -8.3% -4%
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CONTACT: Steve Cook
SCook@commsconsulting.com
202.237.3652
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SOURCE Weiss Analytics
