The number of homes selling above listing has declined, a sign that the housing market may be balancing out. According to the latest quarterly report from home trade-in company Knock, 61.52% of U.S. homes sold below their original listing price in the second quarter of 2019.
During that time, 15% of the homes sold at their original listing price, 23.48% sold above listing and the average discount was 2.65%.
For Q3, 65.41% of homes are forecasted to sell below their marketed price, 13.11% are expected to sell at asking, and 21.48% are predicted to sell above asking. The average discount is expected to be 3.13%.
Seven of the top 10 markets are located in the south, with four of them located in Florida alone.
“While we’re not necessarily seeing the same jump in homes selling below original list prices that we forecasted going into Q2, the good news is that there has been a steady drop in homes selling above their original list prices,” said Jamie Glenn, co-founder and COO at Knock. “Buyers are being more cautious, which is forcing sellers to price their homes more realistically. Of course, lower prices combined with seasonality may lead to less inventory, but I think we’ll see buyers being less hasty to pay over market value regardless of availability.”
Predictions say 65.3% of current on-market listings are expected to sell at a discounted rate from Q3 prices, with 30.1% of houses expected to sell at a 5% discount or more.
Sitting at the top of the list is Miami, where 86.48% of homes sold below their marketed prices in Q2. In Q3, 84.42% of homes are forecasted to sell below their market listing. The average discount to listed price is expected to be 5%.
In June 2019, 50% of homes sold within 1.7% of the Knock predicted final sale price, and 70% sold within 2.8% of the predicted final sale price.
Here are the 10 ten cities where homebuyers are likely to find a discount:
- New Orleans
- New York
- St. Louis