The housing market is shifting temperatures—and in December, homeowners had less negotiating power when selling.
According to data from December from realtor.com®, the biggest cities had higher inventory levels, as well as more price reductions—indicators the market is overripening for sellers.
In the country’s largest markets, inventory rose 10 percent, allowing homebuyers more options; meanwhile, for the nation overall, 15 percent of listings had a price reduction—an annual bump from 13 percent. All in all, in 38 of the 45 major markets in realtor.com’s report, list prices were slashed.
“Sellers are adjusting their strategies, especially in slowing, pricey markets with growing availability of homes for sale,” says Danielle Hale, chief economist for realtor.com. “Although buyers may not find a bargain, the price discounts and recently lower borrowing costs may entice upper-tier buyers back into the market. By contrast, entry-level shoppers continue to contend with declining availability of homes for purchase, albeit at a slower rate.”
In keeping with trend, list prices were up 7 percent, according to the report. By comparison, in December 2017, the median price rose 8 percent. Only 11 of the 45 major markets outpaced 7 percent.
Beyond inventory and price, the days-on-market pace slowed, as well. Despite a three-day pick-up year-over-year—at an average 80 days—listings moved six days sooner in December 2017, and homes languished longer in 19 of the 45 major markets.
*Columbus, Ohio; Denver; Las Vegas; Providence-Warwick, R.I.; and Sacramento, Calif., were excluded due to data revisions or data unavailability.
For more information, please visit www.realtor.com.
Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.
