Bidding wars are getting the housing market headlines now -- and for good reason. But there are places where real estate investors are not only less likely to encounter that competition but to actually get a property for less than asking price.
Property investor platform Stessa.com analyzed Zillow data from September 2020 through February 2021 to come up with a list that ranks the nation's 96 largest metro areas according to the share of listings with a price cut from listing to sale.
The report -- titled "U.S. Cities With the Most (and Fewest) Homes Selling Below Asking Price" -- says that overall, "While home pricing is usually cyclical -- with higher prices and fewer cuts during spring and summer months -- 2020 and 2021 have proven to be aberrations."
And with summer heating up, the market indeed hasn't cooled in many places. This report can help provide some insight on where it might be at least not quite as sizzling.
Chicago tops the list for price reductions; El Paso anchors the list at No. 96
Stessa says its research shows the proportion of listings with price cuts before they sold stayed relatively flat throughout 2020, between 11% and 13%, before turning sharply downward at the end of the year.
And after hitting a recent peak of 17.8% in September 2019, only 8.2% of listings with price cuts were detected in February 2021, the report says, adding: