Looking for the best real estate deals in 2019? Well, one report points to 10 US housing markets where you will be able to buy investment properties below listing price.
Knock Deals Forecast for Q3 2019
While early 2019 US housing market predictions pointed towards a continuing seller’s market that would eventually soften, it seems a balanced market has come much earlier than experts predicted. Knock, a Home-Trade-in platform, released market data which forecasts that 65.4% of on-market listings will sell for under list price in Q3 2019. The average home price discount that investors and property buyers can expect is 3.1%. However, the report says that 30.1% of properties will sell for 5% below listing price.
Another trend of what seems to be a buyer’s market is that fewer homes are selling above listing price. Knock reports that in Q2 2019, only 23.5% of properties sold for a price above the original listing price. This was down from 28.3% in Q2 2018. For this quarter, it’s expected that only about 21% of current on-market listings will sell above listing price.
If you’re looking to grab the best real estate deals this year, here are the top 10 US housing markets that are forecast to have the most listings sell below their original listing price.
|Forecast Ranking||Metropolitan Statistical Area (MSA)||Percent of homes predicted to sell below original list price||Percent of homes predicted to sell at original list price||Percent of homes predicted to sell above original list price||Average predicted discount/ (premium) to original list price|
|1||Miami–Fort Lauderdale-West Palm Beach, FL||84.42%||7.31%||8.27%||5.57%|
|3||Hartford-West Hartford-East Hartford, CT||76.45%||7.57%||15.98%||4.10%|
|4||Houston-The Woodlands-Sugar Land, TX||75.68%||11.55%||12.77%||4.01%|
|5||New Orleans-Metairie, LA||75.51%||14.16%||10.33%||4.68%|
|6||Tampa-St. Petersburg-Clearwater, FL||73.20%||15.28%||11.51%||3.97%|
|8||New York-Newark-Jersey City, NY-NJ-PA||72.78%||8.65%||18.56%||3.91%|
|10||St. Louis, MO-IL||71.34%||13.94%||14.71%||4.85%|
The markets that are forecast to have the best real estate deals during this quarter fall in the North and South of the US. They are also housing markets that have higher-priced inventory. Jamie Glenn, the Co-Founder and COO at Knock, says that cautious buyers are the main reason why more homes will sell below the original listing price:
While we’re not necessarily seeing the same jump in homes selling below original list prices that we forecasted going into Q2, the good news is that there has been a steady drop in homes selling above their original list prices. Buyers are being more cautious, which is forcing sellers to price their homes more realistically. Of course, lower prices combined with seasonality may lead to less inventory, but I think we’ll see buyers being less hasty to pay over market value regardless of availability.
How to Find the Best Real Estate Deals: Use Mashvisor
If you want to take advantage of these real estate market trends quickly, use Mashvisor. With our online real estate investment tools, you can quickly find and analyze investment properties in any of the cities listed above without wasting any time. Start your search right now by clicking here.
Sign Up to Mashvisor Now to stay up to date on the US housing market.