Price Cuts on U.S. Homes Continue to Rise

Written By Kristina Kennedy-Aguero | May 02, 2019 | Published in Real Estate Market Trends
2019%2f04%2f23%2f16%2f06%2f15%2f0b02bcb2 f258 437a 99c1 9da29f6dc70e%2fprice%20cuts%20on%20u.s.%20homes%20continue%20to%20rise

Over 77 percent of single-family homes sold in NYC had a price reduction during the first quarter of 2019, according to a recent report by housing investment startup Knock. This placed the Big Apple in eighth place in their top ten list. Miami was ranked at the top with a figure of 88 percent, and Chicago came in second with 82 percent of properties being purchased at reduced prices. Miami had the largest average discount of 7.2 percent and three other Florida markets, Tampa, Jacksonville, and Orlando, made the list as well.

According to Knock’s figures, New York showed a historical percent deal at an estimated 78 percent from March 1 through 24 this year. The average discount on the original list price was around 5 percent, and properties spent an estimated average of 72 days on the market before selling. So far in 2019, 11,693 listings have been sold. During the first quarter of 2019, New York experienced a significant out of state migration which could have influenced the number of homes selling at less than the list price. Although the figure was in line with Knock’s first quarter predictions of 78 percent, the actual sales figures helped New York jump from the predicted 20th place to 8th.

The Knock Deals Forecast makes some interesting predictions for the second quarter of 2019. For the New York-Newark-Jersey City market (which has a population of 20 million) there are 38,048 active, pending, or contingent listings as of March 24, 2018. Of these, an estimated 76 percent are predicted to sell for less the original list price, with an average discount of 3.6 percent and an average time on the market of just 35 days.

Nationwide, Knock predicts that around 75.5 percent of single-family homes will be sold for less than their original list price during the second quarter of 2019. While this figure is lower than their first quarter prediction, it still reflects a significant year-over-year increase continuing the upward trend seen over the past three months. The 72 percent figure recorded for the first quarter of 2019 shows a 7 percent increase from the first quarter of 2018. And the U.S. saw 59 percent of homes sell for at least 2 percent less than their original list price in the first quarter of 2019, which is an increase of 8 percent over the previous year and 5 percent more than predicted.

Knock COO and Co-Founder Jamie Glenn stated that “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. 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.”

These price drops may indicate a slowdown in the housing market after the post-recession boom. Other factors suggesting a slowdown include the decrease in new-build homes nationwide with this month showing a decline of 8.7 percent, which is the biggest fall in the last eight months. A recent National Association of Realtors report shows that in January existing home sales across the US fell to about 5 million, which is the lowest figure recorded since November 2015. Whatever the cause of this may be, falling prices across the U.S. means that potential homebuyers might be in a better position to close a deal for below asking price. Those looking for a home in the NYC area can find active listings here.

Blog Archive


This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. © 2021 REBNY Listing Service, Inc. All rights reserved. RLS IDX Data display by Elegran LLC. IDX information is provided exclusively for consumers’ personal, non- commercial use and that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Elegran LLC may or may not be the exclusive listing agent of the properties being displayed on All data displayed on is presented for informational purposes only and should be independently confirmed by all customers. All Information is compiled from both public and private sources including, but not limited to the RLS, MLS and ACRIS; each of which is assumed to be reliable. All information displayed is subject to errors and omissions regarding apartment specifications and final sale prices, and further, any unit listed may have had its listing withdrawn without notice subsequent to such information being compiled. No representation is made as to the accuracy of any description (ie: listing, close sale data, and/or building description) of any building or individual unit. All measurements and square footage are approximate and all information herein should be confirmed by customer and/or their attorney. Elegran LLC, its members, affiliates, and contributors adhere to New Your City, New York State, and United States Fair Housing Laws.