Study: Typical Homes Selling Below List in Many Major Markets  

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Best Interest Financial, St. Clair, Mich., and Clever Real Estate, St. Louis, released a new report, finding that the typical home is selling below list price in 41 of the top 50 largest U.S. metros.

However, there are still nine spots where homes are selling above list prices. Those include San Francisco, Hartford, Conn., San Jose, Calif., Boston, New York, Milwaukee, Richmond, Va., Providence, R.I., and Chicago.

Those overlap neatly with the cities where buyers have the least negotiating power, which include Hartford, San Francisco, Chicago, Milwaukee, Providence, Richmond, Virginia Beach, Va., Boston, Fresno, Calif. and Washington, D.C.

In those spots, supply is running low–the typical U.S. market has 3.7 months of available housing supply, but in the spots where buyers have the least negotiating power, there are only 2.4 months.

Bidding wars are also more common in those spots, with homes selling on average for 101.2% of the list price. That compares with 98.3% nationwide. And, only 14% of homes see price drops, six percentage points below the national rate.

Cities where buyers have the most negotiating power, leading to price drops and concessions, include Detroit, San Antonio, Texas, Austin, Texas, Pittsburgh, Houston, Tampa, Fla., Memphis, Tenn., Dallas, Indianapolis and Philadelphia.

These spots have 4.5 months of supply on average, and 23% of active listings have had a price reduction–that compares with 20% nationally. The average price is cut by 4.3% in these cities, compared with 4% nationwide.