The coronavirus pandemic has made life miserable in countless ways. But if you are a home shopper looking to buy in any of a handful of markets, the pandemic might help you find a bargain.
Homes.com notes that in some places, prices have been falling since the pandemic arrived on U.S. shores. The following cities all have seen asking prices ease to some degree.
The City of Angels recently had been one of the hottest real estate markets in the country, Homes.com notes. But from March to April, prices fell 1.1% in Los Angeles County, and sales dropped 21.2%.
However, rent prices are also down in Los Angeles, as we recently reported in “13 Cities Where Renting Is Cheaper Than Owning a Home.” In fact, a June analysis by LendingTree found the city ranks No. 4 in the nation based on much more affordable renting is compared with owning a mortgaged home.
Between the beginning of the pandemic and mid-May, a good share of new listings in Chicago — 33% — saw asking prices fall. The average discount was 26%.
Like Los Angeles — as well as the next city on this list — Chicago ranks among the top 10 cities in the country for how much cheaper it is to be a renter there.
Home prices in California’s capital city did not fall as far as some others in the Golden State, Homes.com notes. Still, prices slipped 3.6% year-over-year in April, and sales were down 31% from that month in 2019.
The city where weirdness is a virtue has seen a strange turn of events since the pandemic arrived. Although just 8% of new April listings and 1% of new May listings in the capital city of Texas were discounted, the price breaks on those properties were high — an average of 35%.
Asking prices in Pennsylvania’s Steel City fell on 27% of new listings during April. But if you want a bargain, you might have to act fast: The share of discounted listings was lower in May, at 24%. The average break on prices was 24%.
Life in paradise has gotten somewhat cheaper for savvy shoppers. Despite a general trend of rising prices overall in Miami, 27% of new listings were showing a discount by mid-May compared with pre-pandemic prices.
Are you planning to buy a home in the near future? If so, check out “9 Tips for Getting the Best Deal on a Mortgage.”