A new study by Agent Advice reveals the states struggling to sell houses at their market value, with the Sunshine State of Florida coming in number one as the state with the most homes sold under their value.
For the study, Agent Advice used Zillow house price data for each state to determine the regions with the most properties sold under value. The data looked at the most recent 950 properties sold to find the states with the highest percentage of those sold below the listed price.
Sunshine State tops the list
The research found that Florida was the state with the most properties sold undervalue at 69.4% of recent sales being bought below the listed price. According to Zillow, the average Florida home value is $399,807, a total that is up 3.4% over the past year.
The median list price in Florida as of April is $433,300, yet the average sale price averages $368,000.
“Evidently, there is a disparity in the amount residents are willing to pay compared to what sellers want to receive,” said the authors of the study. “On average, it takes a property just 33 days to go into pending—the time it takes from listing to an offer being accepted without the deal being closed.”
Rounding out the top five
“The real estate market is known for its fluctuations, often influenced by factors such as climate, location, and economic trends,” said an author of the study.
Coming in second place, Agent Advice found that Montana sold 68.1% of homes are under valued, according to the most recent data. In the last year, Zillow reported the average price of a home has gone up by 5.8%, resulting in the average house costing $463,645 which is unaffordable for many. As of April this year, the average time to pending took only 21 days, and the average listed price stood at $519,633 but the average sale price was much lower at $447,167.
Coming in third in the study is Wyoming that saw 64.7% of houses sold undervalue according to the data, with the average listed price standing at $393,816, but the average sale price being $306,349. On average, properties in the state took 23 days to go into pending, and the current median house price is $344,250.
Sitting in fourth place with a rate of 63.4% of homes sold undervalue is Kentucky that has one of the shortest times to pending on this list at just 10 days on average. Zillow currently lists the average house price at $207,548 which stands at a 5% increase from last year. On average, the median list price is $274,933 compared to the median sale price of $229,933.
With rates of 62.3% of properties sold under value, Wisconsin and Missouri come in a tie for fifth place. Wisconsin saw a 5.6% increase in house prices in the last year, with the average house valued at $302,612. On average, it takes just 17 days for a property in the state to have an offer accepted, and the average sale price is currently $250,667. As for Missouri, the state saw a 5% increase, and has an incredibly fast speed of taking only eight days for a property to go into pending. The typical home in Missouri is valued at $247,255, with an average sold price of $228,267.
Rounding out the top 10
“It is interesting to note the current trend for a lot of southern states where properties are sold under value,” added the author of the report. “Consistently, southern states have ranked low in terms of average wages, education and environment. Hopefully, though, these rankings are beginning to be overturned as more people recognize the opportunities living in the south can bring and we may well see a growth in popularity for the region as lawmakers bring about positive change.”
The state ranking sixth with highest rate of homes sold under value was Arizona, which saw 62.1% of houses sold below the listed price. Arizona is one of the pricier states and currently, the median house cost is $433,667—a 4.1% increase in the last year.
Texas ranked seventh on the list, with 61.3% of properties sold under their original listed price. The Lone Star State saw a 1% increase in house prices compared to last year, relatively low compared to other regions, with the average home now costing $307,038 and taking an average of 25 days for an offer to be accepted.
Ranking eighth on the list was Louisiana, with a rate of 61.2% of all recent properties sold undervalue. Louisiana was one of a few areas that saw a decrease in the average home price, a 2.6% lowering of the cost, as Zillow currently lists the average home at approximately $202,392.
South Carolina ranked next with 60.4% of its properties selling for under their value, and in the last year, it has taken an average of 17 days for a property to go into pending. House prices in South Carolina have risen 4.3%, resulting in the average home costing $296,251 according to Zillow.
Rounding out the top 10, “The Volunteer State” of Tennessee reported a rate of 60% of houses sold below listed value. Now, the average property costs $321,755, an increase of 4.7% compared to last year.
