Home sellers’ price cuts increase in January

This story was originally published in Builder.

Only six months after the most competitive home buying season of all time, realtor.com’s January housing report released today shows that the US real estate market is starting more slowly in 2019. Although home prices are rising, 15% of listings in the US suffered price declines in January, and the decline in the number of days on the market has slowed considerably since last year.

“The US real estate market is getting off to a slower start this year in many markets compared to the rapid acceleration we experienced last January,” said Danielle Hale, chief economist at realtor.com.®. “While the market is slowing, it’s important to remember that we are coming out of four straight years of declining inventory that have driven the market to record low availability of homes for sale. The real measure to watch is entry level. homes, which are the key to restoring balance to the current market. These houses are still in short supply. ”

Sellers are cutting prices, especially in sunny states
In January, the share of homes with falling prices increased by 2% compared to the previous year. This increase is explained by the price reductions in the country’s largest markets. In fact, 39 of the 50 largest markets saw their share of price drops increase from last year. Las Vegas saw the biggest increase in price cuts in January, up 16%. It was followed by San Jose (+ 9%), Seattle (+ 8%), Orlando (+ 6%) and Phoenix (+ 5%).

Time to market increases in major US subways
Nationally, homes sold in 87 days in January, two days faster than last year. But the pace of this decline is slowing. In January 2018, homes sold a full week faster than the previous year. Across America’s 50 largest subways, the typical home spent on average one more day on the market in January 2019, compared to the previous year. San Jose, Calif., Seattle and San Francisco saw the largest increases in days on the market, with properties spending 27, 19 and 15 more days on the market, respectively. On the flip side, properties in Birmingham, Alabama, Milwaukee and Cleveland sold 14, 11 and 9 days faster than last year, respectively.

Rising Inventory In Expensive Markets Keeps Home Prices High
The median listing price in the United States rose 7% year-on-year to $ 289,300 in January, slightly lower than the 8% increase last year. This moderate deceleration in home prices is likely attributed to inventory growth in the upper end of the country’s more expensive markets. The number of homes priced at $ 750,000 and over increased 12% from a year ago, while the number of homes priced at $ 200,000 and under declined 6%.

Of the 50 largest metropolises, 32 saw their median listing prices increase year over year, but only 12 markets exceeded the 7% national increase. Rochester, NY (18% increase), Milwaukee (16% increase) and Seattle (12% increase) posted the strongest year-over-year median list price growth in January. The largest drops in median listing prices were felt in San Jose, California, where prices fell 9%, or $ 100,000. Dallas, Texas; Austin, Houston and Nashville, Tenn., Followed with a drop of 4% in Dallas and Austin and 3% in Houston and Nashville.

This story was originally published in Builder.

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