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New home list prices have dropped in D-FW and the U.S. since COVID-19 outbreak

THURSDAY, June 4

Sellers who have put their homes on the market since the pandemic outbreak are asking less for their properties. About one in four sellers who put their homes on the market in Dallas-Fort Worth and across the U.S. are asking less before the COVID-19 outbreak, according to a study by Weiss Analytics.

Homes priced over $600,000 have been most likely to see price cuts since earlier in the year, Weiss Analytics found. More than a third of sellers with more expensive properties have reduced their prices in hopes of landing a buyer.

Sellers of low- and moderate-priced homes have been more likely to hold the line on what they want, according to Weiss Analytics' analysis of 30 major U.S. home markets. The price declines for new listings in the D-FW area have been about 6%, and nationwide, sellers have scaled back their asking price by a median of 7.7%.

"These higher discounts for more expensive homes, and current relative strength for lower-priced houses, is significant," Allan Weiss, CEO of Weiss Analytics said in the report. He said difficulties in arranging mortgages for expensive homes are "contributing to softer demand and more discounting by sellers at these higher price levels."
Some sellers of higher-priced properties may have also elected not to put their homes on the market, which would pull down the value of overall price listings.

"The future value of entry-level homes faces important uncertainties particularly whether reopening communities can be sustained so we have an employment recovery," Weiss said. "To some degree it is win-win for would-be entry level buyers if prices become more realistic, people maintain their incomes and can borrow to purchase."

Some of the markets that have seen the largest share of new home listings with lower prices are New York (34% of new listings), Baltimore (31%) and Los Angeles (30%). The highest average discounts were in Pittsburgh (20%), Baltimore (10%) and San Antonio (10%). North Texas home sales in April were down about 17% from 2019 levels — the largest year-over-year decline in nine years.

Through the first four months of the year, median home sales prices in the area are about 5% higher than in the same period of 2019, according to data from local real estate agents.

Weiss Analytics provides the next generation of home price indexing, forecasting, and
analytics and is the only provider of house-specific repeat sales indexes in the US.
Founded by national housing index expert Allan N. Weiss, co-founder of Case
Shiller Weiss, Weiss Analytics combines leading industry experience,
proprietary analytics, and state-of-the-art big data computing power
to deliver revolutionary products with unprecedented resolution. Our
unique tools power better decision-making and help mitigate the financial
risk of home ownership and investments. Weiss Analytics is an independent
and trusted information source for home buyers and sellers, real estate
professionals, financial institutions, and hedge funds.


"Don't be fooled by averages. You're buying a house, not the market."