Detroit, long tied to the birth of the auto industry and the sound of Motown, came out as the most negotiable market in the country. Nearly one in five active listings in the city reduced their asking price, and the typical reduction was 6.2% compared with a 4% national average cut. Detroit also posted the lowest median list price among the top 10 at $195,223, and the typical listing remained on the market for 29 days.
Best Interest Financial, an affiliate of Clever Real Estate that offers mortgage options to buyers, looked at nine inputs to gauge buyer leverage. Those included: how sale prices compare with list prices; what share of active listings take a price cut; the average size of those cuts as a share of the original asking price; year over year changes in the sale-to-list relationship; year over year changes in the share of listings with price drops; housing supply measured in months; how long listings sit before selling; and both the median asking price and the median closing price.
Right behind Detroit was San Antonio, where 28.2% of active listings lowered prices and the average reduction was 4%. Homes there took a median of 86 days to sell, longer than the 49-day national median. Austin placed third, with a $454,262 median list price and 26.5% of homes cutting price.
Pittsburgh ranked fourth, recording the second-largest average reduction at 5.5%. The metro posted the No. 2 lowest median asking price in the top 10 at $254,767, with a median time on market of 60 days. Houston rounded out the top five.
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The top 10, in order: Detroit, Michigan; San Antonio, Texas; Austin, Texas; Pittsburgh, Pennsylvania; Houston, Texas; Tampa, Florida; Memphis, Tennessee; Dallas, Texas; Indianapolis, Indiana; Philadelphia, Pennsylvania.
The company told Travel + Leisure that higher borrowing costs are tamping down demand and slowing sales, which is giving shoppers more room to negotiate. It also found that in 41 of the 50 largest U.S. metros, homes generally sell for less than the asking price. For anyone tracking real estate as an investment or a place to live, these are the markets where sellers are more likely to come off list and where time on market gives you more breathing room.
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