Report: Over half of homes on the market will sell below original price
Is there a Black Friday looming for home sales too?
Home trade-in company Knock forecasted that by the end of September 2019, 67% of listings on the market were expected to sell below their original list prices, up 1.6% from the third quarter 2019 forecast.
To that point, the study showed that out of the current listings, 67% are predicted to sell at a discount to their original list prices in Q4 2019, a slight increase from the Q3 2019 prediction, which reflects seasonality.
In Q3 2019, 26.3% of homes sold at a discount of 5% or more. Knock now predicts that 32.1% of homes will sell at a discount of 5% or more in Q4 2019.
According to Knock, there are 10 markets that expect to see a significant decrease in home prices through the end of 2019, as shown in the image below.
(Image courtesy of Knock. Click to enlarge.)
A slower quarterly rate of change in deals points to a more balanced housing market, with 63.6% of homes sold below original list prices in Q3 2019. That’s up 1.9% quarter over quarter compared to 5.2% quarter over quarter in Q3 2018.
“As seasonality takes hold heading into the holidays, we can expect to see a slowdown in the market, but there will still be plenty of opportunities for buyers to find deals,” said Jamie Glenn, co-founder and COO at Knock. “
Knock’s Q4 Forecast points to a year over year trend in the overall softening of the market that creates even more potential for buyers looking to take advantage of current mortgage rates and decreased competition at this time of year,” Glenn added.
The Southeast and Southwest markets are expected to see the highest rate of deals in Q4 2019, with top 10 markets including No. 1 Miami, No. 4 New Orleans, and No. 10 Las Vegas.
Miami is No. 1 again in terms of deals, with 84.2% of homes predicted to sell at a deal in Q4 2019 after 85.3% did in Q3 2019.
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