US cities where homebuyers can get a discount
The median home price in the U.S. is about $310,400, according to data from the Commerce Department – and while prices fluctuate meaningfully across markets, some areas are offering better deals than others.
The U.S. economy is strong and mortgage rates are near a three-year low, which is good news for those looking to get in on the market.
And some Americans are – U.S. new home sales picked up in June, rising 7 percent.
However, affordability remains a concern for many buyers.
Across the U.S., more than 65 percent of on-market listings are expected to sell below their original listing price in the third quarter, according to home trade-in company Knock.
The average discount buyers should expect is about 3 percent, but nearly one-third of homes could sell at a discount of 5 percent or more, the company predicted.
Here’s a look at the top markets where buyers can find a home at a discount, as compiled by Knock in an analysis of the 45 largest metropolitan areas.
MIAMI
While Miami is one of the more pricey areas to buy a home in the U.S., a vast majority of properties are expected to sell below their listing price.
According to researchers, nearly 85 percent of homes in the Miami-Ft. Lauderdale-West Palm Beach area will sell at a discount – the highest amount of any of the major metropolitan areas in the U.S.
The average discount price is expected to be 5.57 percent.
The median home price in Miami, according to online real estate site Zillow, is $335,100.
CHICAGO
Following Miami, Chicago is the next major metropolitan area where prospective buyers might be able to score deals.
According to researchers’ expectations, nearly 77 percent of listed homes will be sold below their original asking price. And buyers can expect to receive an average discount of 4.44 percent.
The median home value in Chicago is about $226,400, with expectations for future declines.
HARTFORD, CONNECTICUT
Slightly fewer homes in the Hartford, Connecticut, area expected to sell at a discount – 76.45 percent. The average discount buyers should expect is about 4.1 percent.
The median home value in Hartford is about $129,500.
HOUSTON
About 75.68 percent of listed homes in Houston should sell below their original asking price.
The average discount? About 4 percent.
In Houston, the median home value is about $186,700.
NEW ORLEANS
Buyers looking for a discount in New Orleans should be able to get a home about 4.68 percent below the listing price.
That is expected to apply to about 75.5 percent of listed properties.
The median home value in the city is about $176,300.
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Rounding out the top 10 are
Tampa (6)
Pittsburgh, Pennsylvania (7)
New York (8)
Jacksonville, Florida (9)
St. Louis, Missouri (10)