SEATTLE, Aug. 16, 2018 /PRNewswire/ -- The share of home
listings with a price cut is greater now than a year ago in
two-thirds of the nation's largest housing markets, according to a
new Zillow® analysis. The share of listings with a price cut
increased the most in markets along with West Coast, with the
median amount of the price cut remaining steady across the U.S. for
the past several years, at about 3 percent.
In San Diego, 20 percent of all
listings had a price cut in June
2018, up from 12 percent a year ago. In Seattle, still one of the nation's fastest
appreciating housing markets despite a recent slowdown, 12 percent
of all listings had a price cut in June, the greatest share since
October 2014. Portland, Sacramento, Calif. and Riverside, Calif. also experienced an increase
in the share of listings with a price cut compared to a year
ago.
The share of listings with a price cut is on the rise across the
U.S., as well. About 14 percent of all listings had a price cut in
June, up from a recent low of 11.7 percent at the end of 2016.
Since the beginning of the year, the share of listings with a price
cut increased 1.2 percentage points, the greatest January-to-June
increase ever reported, and more than double the January-to-June
increase last year.
Nationally, price cuts are more common among higher-priced
listings. The share of higher-priced listings with a price cut rose
0.9 percentage points since the beginning of the year, to 16.2
percent, while the share of lower-priced listings with a price cut
fell 0.1 percentage points, to 11.2 percent. Higher-priced listings
have seen a disproportionately large increase in price cuts in 23
of the 35 largest metros since the beginning of the year.
U.S. home values rose 8.3 percent over the past year to a median
home value of $217,300. While home
value growth isn't slowing down nationally, it is slowing in some
of the nation's hottest housing markets. In almost half of the 35
largest markets, home value growth is appreciating more slowly now
than at the beginning of the year. The median home value in
Seattle rose 11.4 percent over the
past year, but the annual growth rate was close to 14 percent at
the beginning of the year.
"The housing market has tilted sharply in favor of sellers over
the past two years, but there are very early preliminary signs that
the winds may be starting to shift ever-so-slightly," said Zillow
senior economist Aaron Terrazas. "A
rising share of on-market listings are seeing price cuts, though
these price cuts are concentrated at the most expensive
price-points and primarily in markets that have seen outsized price
gains in recent years. It's far too soon to call this a buyer's
market, home values are still expected to appreciate at double
their historic rate over the next 12 months, but the frenetic pace
of the housing market over the past few years is starting to return
toward a more normal trend."
There are fewer listings with a price cut in some of the
nation's more affordable housing markets. San Antonio, Phoenix, Philadelphia and Houston reported fewer listings with a price
cut in June than a year ago. In San
Antonio, where the median home value is $185,000, 17.8 percent of all listings had a
price cut in June, down from about 20 percent of listings a year
ago.
Zillow forecasts home value growth across the U.S. to slow to a
6.6 percent annual appreciation rate over the next year. Among the
35 largest metros, home value growth in San Jose, Calif., Indianapolis and Charlotte, N.C. are forecasted to slow the
most.
Metropolitan
Area
|
Share of
Listings with a
Price Cut -
January 2018
|
Share of
Listings
with a Price
Cut - June
2018
|
Share of
Listings
with a
Price Cut -
June 2017
|
Median
Percent of
Price
Reduction
- June
2018
|
YoY
Home
Value
Growth -
January
2018
|
YoY
Home
Value
Growth
- June
2018
|
Home
Value
Growth
Forecast
Over the
Next Year
|
United
States
|
13.0%
|
14.2%
|
13.4%
|
2.9%
|
7.7%
|
8.3%
|
6.6%
|
New York,
NY
|
12.0%
|
13.3%
|
11.2%
|
3.6%
|
7.6%
|
6.7%
|
6.8%
|
Los
Angeles-Long
Beach-Anaheim,
CA
|
11.1%
|
14.1%
|
11.5%
|
2.6%
|
7.7%
|
7.6%
|
12.1%
|
Chicago,
IL
|
15.9%
|
19.4%
|
16.5%
|
2.7%
|
5.9%
|
5.8%
|
7.1%
|
Dallas-Fort
Worth,
TX
|
15.1%
|
18.8%
|
15.3%
|
2.3%
|
11.0%
|
11.6%
|
7.8%
|
Philadelphia,
PA
|
17.2%
|
16.2%
|
17.9%
|
3.1%
|
7.3%
|
5.9%
|
6.6%
|
Houston,
TX
|
16.3%
|
17.9%
|
19.0%
|
2.6%
|
4.1%
|
5.8%
|
1.5%
|
Washington,
DC
|
13.9%
|
15.4%
|
16.0%
|
2.5%
|
3.9%
|
4.2%
|
3.8%
|
Miami-Fort
Lauderdale,
FL
|
13.7%
|
14.9%
|
13.4%
|
2.9%
|
7.2%
|
7.7%
|
5.4%
|
Atlanta,
GA
|
11.0%
|
13.9%
|
13.2%
|
2.4%
|
8.9%
|
11.6%
|
6.9%
|
Boston, MA
|
11.7%
|
13.3%
|
11.6%
|
3.0%
|
7.3%
|
7.2%
|
8.1%
|
San Francisco,
CA
|
6.5%
|
7.7%
|
7.6%
|
4.2%
|
9.3%
|
11.0%
|
7.5%
|
Detroit,
MI
|
13.9%
|
16.2%
|
15.1%
|
3.5%
|
9.4%
|
9.7%
|
9.0%
|
Riverside,
CA
|
12.4%
|
16.4%
|
11.9%
|
2.2%
|
8.3%
|
7.4%
|
1.7%
|
Phoenix,
AZ
|
17.3%
|
17.8%
|
19.9%
|
1.6%
|
7.6%
|
8.0%
|
3.7%
|
Seattle,
WA
|
6.9%
|
12.0%
|
6.9%
|
3.1%
|
13.6%
|
11.4%
|
7.1%
|
Minneapolis-St
Paul,
MN
|
11.3%
|
13.6%
|
13.7%
|
2.9%
|
7.7%
|
7.6%
|
6.1%
|
San Diego,
CA
|
12.3%
|
20.0%
|
12.0%
|
2.3%
|
7.9%
|
6.6%
|
4.7%
|
St. Louis,
MO
|
15.3%
|
15.3%
|
14.5%
|
3.1%
|
5.7%
|
5.5%
|
4.9%
|
Tampa, FL
|
18.6%
|
22.2%
|
20.2%
|
2.4%
|
10.8%
|
10.9%
|
7.5%
|
Baltimore,
MD
|
16.3%
|
18.2%
|
18.7%
|
2.8%
|
3.6%
|
5.0%
|
4.8%
|
Denver, CO
|
10.9%
|
15.1%
|
15.2%
|
2.2%
|
7.7%
|
7.4%
|
5.1%
|
Pittsburgh,
PA
|
15.2%
|
14.7%
|
15.4%
|
3.7%
|
6.6%
|
7.9%
|
4.6%
|
Portland,
OR
|
12.8%
|
17.4%
|
12.7%
|
2.6%
|
5.7%
|
5.9%
|
2.7%
|
Charlotte,
NC
|
11.9%
|
15.4%
|
11.2%
|
2.4%
|
9.7%
|
11.0%
|
3.3%
|
Sacramento,
CA
|
12.3%
|
16.7%
|
12.2%
|
2.4%
|
8.7%
|
6.4%
|
4.9%
|
San Antonio,
TX
|
18.4%
|
17.8%
|
20.2%
|
2.1%
|
6.5%
|
5.6%
|
2.7%
|
Orlando,
FL
|
14.8%
|
19.2%
|
18.8%
|
2.3%
|
10.0%
|
9.7%
|
6.5%
|
Cincinnati,
OH
|
14.4%
|
14.4%
|
13.3%
|
3.2%
|
6.4%
|
6.6%
|
5.4%
|
Cleveland,
OH
|
13.5%
|
13.5%
|
13.5%
|
3.6%
|
7.1%
|
7.1%
|
3.1%
|
Kansas City,
MO
|
10.4%
|
11.6%
|
11.9%
|
3.0%
|
8.8%
|
9.2%
|
3.1%
|
Las Vegas,
NV
|
9.4%
|
14.0%
|
11.7%
|
2.1%
|
15.3%
|
15.0%
|
8.0%
|
Columbus,
OH
|
12.5%
|
15.1%
|
12.5%
|
2.7%
|
10.6%
|
9.1%
|
5.4%
|
Indianapolis,
IN
|
15.9%
|
15.0%
|
15.0%
|
2.7%
|
6.2%
|
8.5%
|
-1.3%
|
San Jose,
CA
|
5.9%
|
9.5%
|
7.2%
|
4.5%
|
18.8%
|
27.2%
|
11.8%
|
Austin, TX
|
18.4%
|
19.4%
|
18.7%
|
2.1%
|
5.7%
|
5.7%
|
2.8%
|
Zillow
Zillow is the leading real estate and rental marketplace
dedicated to empowering consumers with data, inspiration and
knowledge around the place they call home, and connecting them with
great real estate professionals. In addition, Zillow operates an
industry-leading economics and analytics bureau led by Zillow
Group's Chief Economist Dr. Svenja
Gudell. Dr. Gudell and her team of economists and data
analysts produce extensive housing data and research covering more
than 450 markets at Zillow Real Estate Research. Zillow also
sponsors the quarterly Zillow Home Price Expectations Survey, which
asks more than 100 leading economists, real estate experts and
investment and market strategists to predict the path of the Zillow
Home Value Index over the next five years. Launched in 2006, Zillow
is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and
headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
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