Editor's Note: This story originally appeared on Porch.
The real estate market over the past year has offered few deals and discounts for homebuyers. With the inventory of existing homes reaching historic lows last fall and new construction still slowed by supply chain and labor challenges, a growing number of buyers have been competing for a limited number of homes.
This has driven home prices to record heights, with some of the fastest rates of price growth on record.
There are recent signs that these trends are slowing down as the market has moved into the historically less active fall and winter months. Inventory has rebounded to pre-pandemic levels, offering buyers more options. The length of time a listing spends on the market is rising. And the pace of growth in home prices is also beginning to slow.
Another encouraging sign is the share of homes for sale that have seen their prices cut. When the market was at its most competitive, it was common for many homes to sell well above their asking price and few homes to see their price reduced. According to data from Redfin, the share of homes experiencing a price cut reached a low of 6.5% in February 2021, but that figure began to climb upward in May, and by September of this year, 13.4% of homes saw a price decrease.
The data used in this analysis is from Redfin and Zillow. To determine the locations where the most homes experienced a price cut, researchers at Porch calculated the percentage of active listings with a price cut in each market, accounting for the first nine months of 2021. You can read more about our methodology at the end.
Following are the metros where the largest share of homes experienced a price cut in 2021.
15. Oklahoma City, OK
- Percentage of listings with a price cut: 23.6%
- Average sale-to-list price ratio: 100.0%
- Median home price: $192,346
- Annual percentage change in median home price: +14.3%
14. Buffalo-Cheektowaga, NY
- Percentage of listings with a price cut: 24.1%
- Average sale-to-list price ratio: 105.9%
- Median home price: $225,277
- Annual percentage change in median home price: +20.1%
13. Orlando-Kissimmee-Sanford, FL
- Percentage of listings with a price cut: 24.5%
- Average sale-to-list price ratio: 99.2%
- Median home price: $328,555
- Annual percentage change in median home price: +20.3%
12. Baltimore-Columbia-Towson, MD
- Percentage of listings with a price cut: 25.1%
- Average sale-to-list price ratio: 100.8%
- Median home price: $349,655
- Annual percentage change in median home price: +12.8%
11. Houston-The Woodlands-Sugar Land, TX
- Percentage of listings with a price cut: 25.1%
- Average sale-to-list price ratio: 99.5%
- Median home price: $272,066
- Annual percentage change in median home price: +18.8%
10. New Orleans-Metairie, LA
- Percentage of listings with a price cut: 25.2%
- Average sale-to-list price ratio: 98.2%
- Median home price: $249,800
- Annual percentage change in median home price: +13.7%
9. Tulsa, OK
- Percentage of listings with a price cut: 26.0%
- Average sale-to-list price ratio: 99.5%
- Median home price: $184,770
- Annual percentage change in median home price: +15.9%
8. Sacramento-Roseville-Folsom, CA
- Percentage of listings with a price cut: 26.1%
- Average sale-to-list price ratio: 103.2%
- Median home price: $567,023
- Annual percentage change in median home price: +24.0%
7. Seattle-Tacoma-Bellevue, WA
- Percentage of listings with a price cut: 27.2%
- Average sale-to-list price ratio: 105.3%
- Median home price: $695,058
- Annual percentage change in median home price: +21.8%
6. Tampa-St. Petersburg-Clearwater, FL
- Percentage of listings with a price cut: 27.7%
- Average sale-to-list price ratio: 99.7%
- Median home price: $316,379
- Annual percentage change in median home price: +28.7%
5. Portland-Vancouver-Hillsboro, OR-WA
- Percentage of listings with a price cut: 28.5%
- Average sale-to-list price ratio: 103.1%
- Median home price: $532,300
- Annual percentage change in median home price: +19.2%
4. Salt Lake City, UT
- Percentage of listings with a price cut: 30.6%
- Average sale-to-list price ratio: 102.9%
- Median home price: $539,824
- Annual percentage change in median home price: +28.4%
3. Denver-Aurora-Lakewood, CO
- Percentage of listings with a price cut: 31.8%
- Average sale-to-list price ratio: 103.5%
- Median home price: $574,734
- Annual percentage change in median home price: +22.0%
2. Indianapolis-Carmel-Anderson, IN
- Percentage of listings with a price cut: 33.1%
- Average sale-to-list price ratio: 100.6%
- Median home price: $235,663
- Annual percentage change in median home price: +18.1%
1. Fresno, CA
- Percentage of listings with a price cut: 42.4%
- Average sale-to-list price ratio: 99.9%
- Median home price: $358,255
- Annual percentage change in median home price: +22.7%
Methodology
The data used in this analysis is from Redfin’s Data Center and Zillow’s Housing Data. To determine the locations where the most homes experienced a price cut, researchers calculated the percentage of active listings with a price cut in each market.
In the event of a tie, the location with the lower average sale-to-list price ratio was ranked higher. These fields were determined using a weighted average of monthly data from 2021 based on the number of homes sold for each location and time period. The median home price field is the most recent Zillow Home Value Index, and its change was calculated between October 2020 and 2021.
To improve relevance, only metropolitan areas with at least 100,000 residents were included. Notably, only metropolitan statistical areas and states with complete data from both Redfin and Zillow were included.
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