A recent report predicts that over half of current on-market listings will sell below original list prices in Q2 2019. The Knock Deals Forecast takes a look at which U.S. markets will have the highest percentage of homes that sell below their original list prices in Q2 2019.
“As we head into Spring Homebuying Season, I’m extremely excited to release our second National Knock Deals Forecast of where home buyers across the U.S. can find savings – whether in their current market or as they make the move to another city,” said Sean Black, Co-Founder and CEO of Knock. “Our findings will help more buyers take advantage of opportunities for savings that can make a life-changing move possible for them and their families.”
Knock predicts that 75 percent current on-market listings will sell below their original list prices in Q2 2019, slightly below the Q1 2019 prediction of 77 percent, though 72 percent of homes sold below their original list prices in Q1. However, Knock notes that the lower prediction represents a significant year over year increase.
“The Q1 Forecast, which may have seemed to be a big jump over 2018, was actually much closer to the reality of home sales in Q1 2019 than home sales at the same time last year, or even at the end of 2018,” said Jamie Glenn, Co-Founder and COO at Knock. “It’s clear that we’re at an inflection point in the shift to more of a buyer’s market, and the Q2 Forecast provides insights into where and how buyers can capitalize on that.”
Knock also notes the the gap between list prices and sale prices both for accurately-priced and overpriced listings has been widening. Paul Habibi, Economic Advisor to Knock and Lecturer of Real Estate at UCLA Anderson School of Management notes how this overpricing is impacting sales and bueyrs.
“As the cooling of the market starts moving West, Phoenix is just one example of how the combined effects of a shift to a buyer’s market and continued overpricing will take their toll in the form of more savings for home buyers,” said Habibi. “Given the accuracy of the Q1 National Knock Deals Forecast, buyers who have been challenged by affordability can look to these predictions for insights into how a home purchase might be possible for them this Spring home buying season.”