These housing markets are seeing huge price drops right now
Home buyers in big cities are getting some of the biggest discounts in recent years, with the most significant price reductions in metros like Pittsburgh and New Orleans, according to Zillow.
In a new report released Monday, the online real estate forum said general discounts increased to $25,000 for $25,000 for $25,000 for October, “matching Zillow’s big discounts to follow.” The report says that home sellers tend to drop prices again and again before the sale.
As housing developments continue to grow, driving further price reductions, there is an “opening” to open “to potential buyers who are finally seeing improved conditions in some major US cities, the report said.
Tax rates in the low-6% range make costs less manageable compared to the previous two seasons. Zillow suggests that “patient” buyers may be able to find good deals on home purchases when sellers cut prices on homes that are on the market.
The smallest home price discounts are mostly available in the least expensive metros with a strong pace of home sales. Oklahoma City (-$15,000), Louisville, Kentucky (-$15,000) and St. Louis ($15,100) topped that list. But where are they? – big price cuts?
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Of the 50 largest metro statistical areas, or MSAs, these are the homes with the biggest price cuts in October, according to Zillow:
- San Jose, California: – $70,900
- Los Angeles: – $61,000
- San Francisco: – $59,001
- New York: – $50,000
- San Diego: – $50,000
- Boston: – $49,900
- Seattle: – $41,000
- Austin, Texas: – $36,000
- Portland, Oregon: – $31,901
- Sacramento, California: – $30,900
Not surprisingly, many of the most expensive markets are at the top of this list. In San Jose, for starters, the average sales price is more than $1.3 million, which is nearly four times the average American home price, according to Zillow data. Naturally, home price cuts tend to be larger in an expensive city.
In affordable housing markets, “small cuts can represent a big discount for buyers,” Zillow explains. For example, the median price cut of $70,900 in San Jose is only 5% of the average home price.
In other words, when you look at the context of home prices, those people on the West Coast and the Northeast markets will no longer dominate the list.
Relative to home prices, these are the five markets with the biggest discounts in October:
- Pittsburgh (about -9% of average home value)
- New Orleans (-9%)
- Austin, Texas (-8.4%)
- Houston (-8.2%)
- San Antonio (-7.9%)
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