Home buyers cashing in on big price cuts: Zillow
‘Tis the season for discounts, and home buyers across the United States are cashing in on record-level price reductions.
The typical U.S. listing saw $25,000 in cumulative price cuts in October, according to a new Zillow analysis. According to the real estate platform, typical price cuts remain near $10,000, but multiple price reductions are becoming more common as homes take longer to sell.
“These discounts are bringing more listings in line with buyers’ budgets and helping fuel the most active fall housing market in three years. Patient buyers are reaping the rewards as the market continues to rebalance,” Kara Ng, a Zillow senior economist, said.
The markets seeing some of the biggest price cuts also happen to be some of the most expensive, such as Los Angeles at $61,000 and New York at $50,000. But buyers in less expensive markets are also reaping the benefits, as smaller cuts can represent a bigger relative discount in places like Pittsburgh, Austin and Houston.
But the price cuts aren’t budging too much in cities like Louisville, Oklahoma City, Detroit and St. Louis, which recorded the smallest cumulative discounts in October. Zillow reports homes in these cities are selling fast, apart from Oklahoma City, which indicates steady demand. As a result, sellers don’t have to knock their prices down as much to attract buyers.