Does Real Estate Have A Black Friday?
With Black Friday and Cyber Monday just days away, you've probably already put together your list of every smart-home device on your wish list, complete with each retailer's discount, and when they go on sale. And if you didn't that's ok, because Cnet did.
But if you're here, you're probably wondering whether the real estate market has its own Black Friday, and if so, where the deals are.
To answer this question: Yes, it is officially a buyer's market - Black Friday for real estate has arrived.
How do we know? A few key indicators: 1) the share of U.S. homes listed for sale with at least one price cut is now at its highest level since 2014; 2) nationwide, the average percentage of homes that have had price reductions has soared from 13.23% a year ago, to 15.89% in August, with some areas in Florida and Chicago seeing almost one third of the listing inventory offering discounts; and 3) the price to list ratio of homes sales has now declined for the past 4 months straight.
Percentage of Homes With Price Cuts by Month (Nationwide)
Where are the deals?
The chart below represents 33 of the top 100 Metro areas in the US where the largest percentage of where homes were discounted in September of this year.
How much are prices discounted?
Median discounts in top US markets ranged from 3% - 5% Metro-wide in most of the top 100 markets, but if you know what to look for, you'll likely find some deals upwards of 50% in distressed situations.
What about the doorbusters?
In true Black Friday spirit, you can find major discounts in zip codes, like Camden, NJ and Wayne, MI, (median price reductions of 17% - 20% respectively), or for those who like warmer weather, we'd probably be more likely to look for a home in Lihue, Hawaii, which had a median price reduction of 15% (Reminder: start looking for Black Friday deals on flights to Kauai).
Will I have to wait on endless lines or push my way to the front?
Interestingly, it seems that Thanksgiving is a time when many say thanks for what they have, and put real estate aside.
We looked at search trends for "Real estate" on Google and found that search traffic reduced around 40% on Thanksgiving and Black Friday from the week before. So, if you're looking for deals and want to beat the crowds, maybe there really is a Black Friday for real estate...
Are there personal shoppers?
If you're thinking about purchasing or selling, or are looking for information on the buying or selling process, feel free to contact us, to find out how to simplify the entire process with local experts in your market. And, don't forget to have a wonderful Thanksgiving (and a stress-free Black Friday)!