Miami is predicted to rule all in home price deals
In 2018, 62% of all homes sold in top U.S. metropolitan markets sold below their original list price, according to EasyKnock.
As the year comes to an end, the home equity company is looking ahead to next year, predicting that 77% of current on-market listings will sell below original list prices in the first quarter of 2019.
“While there’s no denying that home prices have been steadily on the rise, list prices are clearly increasing above realistic levels, corroborated by the study’s findings that over 60% of homes sold well below their original list prices in 2018,” EasyKnock Economic Advisor Paul Habibi said.
According to EasyKnock’s analysis, half of the top 10 markets in the South, and Miami are projected to have the highest rate of deals, coming in at a whopping 89%. That being said, Miami, Houston and Chicago are projected to have the best home price deals next year.
Notably, Jacksonville, Florida; New Orleans; Hartford, Connecticut; St. Louis; Pittsburgh; Tampa; and Cincinnati are also predicted to dominate the market in home price deals. In these metros, discounts are expected to average more than 4.5%, which is higher than the national average of 4.01%.
“Average savings are on the rise in these markets. Given that the slowdown of home price increases is just beginning to take hold, we can expect home sellers to continue to set their original list prices on the higher end, which has the potential to result in greater deals for home buyers,” EasyKnock writes. “Particularly as we head into January, which has historically been one of the best months for deals, the combination of seasonality and the slowing market make the perfect recipe for the increased rate of deals predicted by the Knock Deals Forecast.”
The image below highlights the top 10 markets for deals heading into 2019:
Source: Alcynna Lloyd