Home sellers have more bargaining chips in today’s market—they profited an average 21 percent on sales in 2016—but in some areas, the tables have turned in favor of homebuyers.
The strongest seller’s markets, according to a new report by Zillow, are clustered in California, while the strongest buyer’s markets dot the East Coast.
“The overall recovery has been more robust in some markets, especially on the West Coast, with fast home value appreciation, strong job growth and solid income gains,” says Dr. Svenja Gudell, Zillow’s chief economist. “Many of these markets are also experiencing above-average housing demand coupled with limited inventory, putting sellers in the driver’s seat. On the flip side, a number of markets nationwide continue to struggle with slower job growth, weaker home value appreciation and higher rates of negative equity, giving buyers more negotiating power.”
Weighing days on market (on Zillow.com) and price reductions, Zillow’s top buyer’s markets are:
- Baltimore, Md.
Days on Zillow: 104
Percentage of Listings with Reduced Prices: 12.7 percent
- Miami, Fla.
Days on Zillow: 108
Percentage of Listings with Reduced Prices: 11.5 percent
- Philadelphia, Pa.
Days on Zillow: 101
Percentage of Listings with Reduced Prices: 13.3 percent
- Chicago, Ill.
Days on Zillow: 105
Percentage of Listings with Reduced Prices: 10.6 percent
- Houston, Texas
Days on Zillow: 94
Percentage of Listings with Reduced Prices: 10.9 percent
Today’s buyer’s markets could set in motion a shift to a buyer’s market overall—in fact, another recent report by Zillow forecasts a buyer’s market by 2018 or 2019.
Zillow’s top seller’s markets are:
- San Francisco, Calif.
Days on Zillow: 51
Percentage of Listings with Reduced Prices: 5.4 percent
- San Jose, Calif.
Days on Zillow: 50
Percentage of Listings with Reduced Prices: 6.0 percent
- Denver, Colo.
Days on Zillow: 57
Percentage of Listings with Reduced Prices: 6.5 percent
- Seattle, Wash.
Days on Zillow: 53
Percentage of Listings with Reduced Prices: 6.6 percent
- Sacramento, Calif.
Days on Zillow: 62
Percentage of Listings with Reduced Prices: 7.5 percent
“Whether you live in a buyer’s or seller’s market, there are a few things you can do to stand out from the crowd,” Gudell says. “If you’re a buyer in a seller’s market, it’s important to get preapproved for a loan so you can move as quickly as possible. It’s also helpful to find an agent with a track record of winning bidding wars. If you’re a seller in a buyer’s market, consider making small improvements to your home to make it more attractive, and be prepared to be a bit more patient waiting for offers to come in. Every housing market is different, so it’s important for buyers and sellers to educate themselves on the type of market they’re in.”
For more information, please visit www.zillow.com.
For the latest real estate news and trends, bookmark RISMedia.com.
