Another canary? More homes sell at below asking price, report shows

National /
Apr.April 04, 2019 02:15 PM

Home prices are being reduced in major markets (Credit: iStock)

One more indicator of a housing market slowdown: More homes are being sold at prices below asking.

That’s according to a new first-quarter report by housing investment startup Knock, Bloomberg reported. The results could also be an indicator of the cities most at risk from the market cool down.

Miami led Knock’s top 10 list, with about 88 percent of single-family homes purchased after the seller lowered the price. Chicago ranked second, with 82 percent of homes sold at a discount from the initial asking. New York City ranked eighth, with more than 77 percent of homes sold at a price reduction. Los Angeles was not on the list.

In Florida, Tampa, Orlando and Jacksonville also ranked in the top 10 with lower-than-asking prices. The drop in Florida prices could also be due to the high number of second homes in those markets. Buyers are more wary of paying higher prices for second homes, and those prices are generally the first to fall during a downturn, according to Bloomberg.

The overall drop in prices aligns with a number of recent nationwide housing indicators and reports that show the post-recession housing boom is coming to an end.

Along with pricing declines, there are also fewer new homes being built. Nationally, new-home groundbreakings in the U.S. fell 8.7 percent in February, the biggest drop in eight months, according to data from the Census Bureau and Department of Housing and Urban Development.

In January, existing home sales dropped to 4.95 million, the lowest number since November 2015, according to a recent report from the National Association of Realtors. [Bloomberg]Keith Larsen


Related Articles

arrow_forward_ios
Lennar's Stuart Miller and 28600 Southwest 132nd Avenue (Google Maps)

Lennar spends $29M on Homestead mobile home park, plans new community

Lennar spends $29M on Homestead mobile home park, plans new community
Boca Raton Municipal Golf Course with GL Homes' Misha Ezratti, head of GL Homes and Boca Raton Mayor Scott Singer (Google Maps, Lila Photo via GL Homes, Twitter)

Slow play: GL Homes’ purchase of Boca Raton golf course pushed to 2021

Slow play: GL Homes’ purchase of Boca Raton golf course pushed to 2021
Brent Baker and a  rendering of 5024 South State Road 7 (DiVosta, iStock)

Pulte buys 31 acres in Lake Worth, plans housing community

Pulte buys 31 acres in Lake Worth, plans housing community
Stuart Miller of Lennar & a map of Arden community

Lennar pays $14M for land at Arden

Lennar pays $14M for land at Arden
Mark Pulte & 701 South Ocean Boulevard, Delray Beach (Credit: Google Maps)

Mark Pulte’s homebuilding firm buys Delray Beach oceanfront lot for $11M

Mark Pulte’s homebuilding firm buys Delray Beach oceanfront lot for $11M
Dr. Walter Okoroanyanwu, Angelo Bianco and Jim Carr 

Doctor’s orders: developers increasingly tap medical experts, amenities

Doctor’s orders: developers increasingly tap medical experts, amenities
GL Homes President Misha Ezratti (Credit: LILA PHOTO via GL Homes)

GL Homes offers $22M for development rights in Agricultural Reserve

GL Homes offers $22M for development rights in Agricultural Reserve
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley

Baptist, Belmont gain approval for luxury senior living in Coral Gables

Baptist, Belmont gain approval for luxury senior living in Coral Gables
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...