Skyline of Miami, Florida, USA around Sunset.
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Here’s Knock.com’s Q4 report with good news for buyers. Knock forecasts savings for home buyers which in several desirable areas. Sean Black, Knock.com’s CEO talks about the research findings.” Deals are slowing more than we thought. That’s good news for buyers. It’s taken some time for sellers to come back to earth from the days of multiple offers above asking prices. Overall, we’re seeing a softening in the market, with a declining rate of change in homes selling below their list prices.”
Buyers should take note of highlights from Knock’s data: “More homes are predicted to sell below their original list prices, or at a deal, in Q4 2019, reflecting seasonality.” Here’s a look at Knock’s “Top 10 Markets By Rate of Homes Below Original List Prices In Q4 2019.” The data is broken down by MSA (metropolitan statistical area) For the entire United State a significant 66.9% will sell below the original list price. With the predicted discount to original list price at 3.67%. Not huge, yet still a decline.
Topping the chart with a 5.67% predicted discount to original list price is Miami-Fort Lauderdale-West Palm Beach, Florida. Knock predicts an astounding 84.2% will sell at a discount. Not surprising that Florida topped the list of the state with the largest number of new residents. The Chicago MSA is number two with 77.7% selling for less than original listing price.
Check out Knock’s chart below to see the top ten.
Knock’s Top Ten Markets
Knock.com
On October 16, there was a price cut of $200,000 on an outstanding restored Mid-Century style Miami home featured in Dwell. Listed for $2,795,000 just 30 days before.
Taking the number ten spot is the Las Vegas-Henderson-Paradise, Nevada MSA at 71/9% selling at a discount. Black points to markets like Las Vegas which enjoyed appreciation after taking a deep dive during the recession when condos on and off the strip where going for fifty cents on the dollar. “We see deals in Vegas because as the economy softens tourism is the first thing to go.”
In Las Vegas, a 2,062 square foot two-story home was just reduced $15,000 from $380,000 to $365,000. The description copy reads, “PRICE REDUCED! GREAT OPPORTUNITY FOR INVESTORS.”
Here are some takeaways for buyers and sellers in Q4 from Black. “It’s a great time to buy. The question for sellers is, can you wait to sell? Buyers are having more leverage as prices soften and there is less competition out there at this time of year. Nobody really wants to move or have their house up for sale with open houses and showings during the holidays. Sellers who put their home on the market are usually motivated now.” The best advice Block has for buyers, “negotiate and don’t throw your best offer out first. You can also sneak in concessions and then let the sellers sweat it out.” Well, that’s breaking news.