Large, Small Markets See Diverging Pricing Trends
December 3, 2018
A tale of two housing markets is unfolding nationwide, with homes in large cities seeing deep price cuts while those in smaller markets experience growth, according to realtor.com®’s November housing report. “The housing market is a ‘Tale of Two Cities’ as the divergence widens between high-cost, large urban areas and smaller, more affordable markets,” says realtor.com® Chief Economist Danielle Hale. “Buyers in large metros are seeing more homes on the market and listing prices decline, while those in smaller markets continued to see price increases.”
Twenty-two percent of listings nationwide saw price reductions last month, up from 19 percent a year ago, according to realtor.com©. Forty of the 45 largest markets in the country saw more price reductions in November, with the most in:
- San Jose, Calif. (up 16 percent)
- Indianapolis (up 15 percent)
- Seattle (up 12 percent)
- San Francisco (up 9 percent)
- San Diego (up 9 percent).
On the other hand, several smaller markets saw home prices still rising last month. For example, prices were on the rise in markets like Chattanooga, Tenn. (up 17 percent); Spokane, Wash. (up 15 percent); and Greensboro-High Point, N.C. (up 14 percent).
Updated: January 15, 2019