As of June 2022, the housing market wasn’t looking fantastic, especially for those wanting to sell their home. While housing prices have seen an increase over 2022 of 6.6%, housing purchases have slowed, cooling by 6.7%. Higher prices are great if you can manage to sell your home. In some states, however, you’re much less likely to get your original list price.
Tony Mariotti from Ruby Home made mention of a trend that obviously isn’t a nationwide phenomenon. “In June of 2021, a record high share of homes sold for more than their asking price, with 56% of homes doing so across a 90-day period. However, it’s fascinating to see where this isn’t the case and that homes selling for more than list price may not be a nationwide thing just yet.”
In order to have this sort of data, Ruby Home analyzed 12 months’ worth of Zillow data to find the top ten states where homes are selling below their original list price. This data allows home sellers and buyers to determine if selling or buying is a good option based on individual circumstances.
10. West Virginia
West Virginia, aptly named the Mountain State, is number ten on our list with the lowest percentage below the list price of the top ten analyzed by real estate experts — 97.28% under the list price. That means an average home price of $300,024 would sell for $291,863.35. Even if you factor in closing costs for the buyer, that $8100 loss is significant, especially when buyers often come in below the list price, to begin with.
Illinois, the Prairie State, comes in at number nine with a sales-to-list price ratio of 97.57%. This low percent means you’re losing a mint on an average housing list price of $269,575.
Oklahoma, the Sooner State, peaks in at number eight with an average sales-to-listing price percentage of 98.07%. The cities of Danville, Pontiac, and Charleston ranked the lowest of any in the state, all ranging in the 95 percentile for their sales-to-list price ratio. The Sooner State has plenty of history and great sightseeing and might be just the place to live if you’re looking to buy.
The Hawkeye State, also known as Iowa, comes in at number seven, moving into the 98th percentile of the sales-to-list price ratio with 98.21%. Bordered by the Mississippi River on the east and the Missouri and Big Sioux rivers on the west, this midwestern state has plenty to offer, but getting your asking price on a home might not be one of them.
The Commonwealth of Kentucky or the Bluegrass State slides easily into 6th place with a solid 98.22%. The most northern of the southeastern region of the US, Kentucky is home to the Kentucky Derby, but when it comes to home sales, it isn’t holding up well. If you’re looking to get your asking price, you’ll want to wait to sell.
With a 98.33% sales-to-list-price ratio, Louisiana, the Pelican State, slips into 5th place. Whether you want to experience Mardi Gras or sink your teeth into some Creole cooking, Louisiana can be a great place to purchase a home. Selling, however, might take some getting used to as you’re not likely to get your list price in this state.
Bordering five states in total and the Gulf of Mexico to its south, the Magnolia State, Mississippi, has a lot to offer anyone looking to purchase a home. Coming in hot at number 4 with a sales-to-list-price ratio of 98.44%, Mississippi is a buyer’s paradise. If you’re looking to sell your home, however, waiting a few months might prove beneficial in getting closer to the original list price.
Spot number 3 belongs to the Natural State. Arkansas boasts some serious natural resources, environmental protection, wilderness, and wildlife. For a nature lover looking to purchase a home, Arkansas is looking good with a sales-to-list-price ratio of 98.87%. You could do worse than Arkansas for anyone looking to move and get their money’s worth.
Crashing into the 2nd spot is the Sunshine State of Florida. With miles of sunny coastline, Florida has a lot to offer a homebuyer. Sharing a sales-to-list-price ratio of 98.90 with the number one state, this vacation hot spot could be paradise for the right buyer.
And stealing the number 1 spot in our top ten list is the Lone Star State of Texas. Matching a sales-to-list-price ratio with Florida, Texas is looking to score some serious buyers and has plenty to hand out. Bordering Mexico to its South and the Gulf of Mexico to its east, Texas has plenty to keep a new homebuyer busy and entertained. History runs deep with places like The Alamo and Galveston. If you’re looking to buy, Texas has some prime real estate to snatch up.
Finding good real estate isn’t always easy, but knowing the states selling cheaper than the list price can go a long way to narrow your search for your next home purchase.
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