More than three quarters of U.S. homes on the market will sell below the asking price in the first quarter of 2019, according to a national forecast by Knock, a company that helps people sell and buy homes.
Knock predicts that 77 percent of all U.S. homes will sell below the asking price in January, February and March, compared to 62 percent so far in 2018.
In Miami, for example, the average home will sell 6.8 percent below the original asking price in the first three months of 2019, according to Knock’s forecast.
Knock’s national forecast is based on its analysis of 483,843 active listings in 45 metropolitan areas during November, and the company says long-duration listings often result in sale prices below asking prices.
According to the analysis, among all U.S. homes sold in November, 92 percent of those listed for more than two months sold at prices below the original asking price.
Miami homes last year were on the market an average of 85.08 days and sold at prices that were, on average, 4.37 percent below the asking price – the longest average listing duration and biggest average discount from the asking price among all 45 metropolitan areas that Knock analyzed.
Knock may benefit from its own forecast. Customers pay the company a fee to “trade in” one home for another, so research showing that most homes sell below the asking price may encourage more homeowners to sell through Knock rather than listing their property with a real estate agent. [Inman] – Mike Seemuth
Source: The Real Deal Los Angeles