Expect to See More Price Reductions in the Housing Market
Buying a home? Expect to see more price reductions in the housing market well into 2019. The share of homes for sale listed with a price cut hit its highest level since 2014, but the reductions themselves are shrinking, according to Trulia.
About 17.2 percent of house listings had at least one price cut in August, up from 16.7 percent a year ago according to National Mortgage News. While this may seem like a good sign for homebuyers, the median price reduction only knocked 2.6 percent off a listing price. This figure has been steadily falling since 2012, when it was 4 percent.
Local housing markets experienced varying results, with some seeing price reductions for up to 26.4 percent of homes, like in San Diego, and others having reductions for only 14 percent, such as in Pittsburgh.
“Buyers should be encouraged by the signals we’re seeing in the market. But not all buyers will benefit equally, and it pays to do research on your preferred neighborhood,” Felipe Chacon, Trulia’s housing economist, said in a press release.
“Price reductions typically aren’t uniformly spread out across a given city — some neighborhoods might have a lot of listings with a reduced price, others may have none. Our research shows that price cuts are much more prevalent in higher-cost neighborhoods, so budget-conscious buyers may have some trouble finding a bargain,” Chacon added.
Of the nation’s top 100 metropolitan areas, 63 had a higher share of property listings with price cuts in August compared to the same period last year.
If you’d like more information about the current housing market, need help prequalifying for a mortgage to buy a home in Prescott or are interested in building a custom home in Prescott, please contact Crystal Creek Builders today.
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