SEATTLE, March 7, 2019 /PRNewswire/ -- Limited
inventory and rapid price appreciation have kept sellers firmly in
the driver's seat for several years as the United States recovered from the housing
market collapse. Now, buyers are gaining more negotiating power as
the housing market slows, especially in some of the nation's
hottest markets.
In 20 of the 35 largest metros, market conditions favor buyers
more than they did a year ago, according to the Zillow®
Buyer-Seller Index. The index is based on the share of listings
with a price cut, how long it takes to sell a home, and the
sale-to-list price ratio. By comparing each metro across time, this
analysis shows whether the market is cooler (favoring buyers) or
hotter (favoring sellers) than it was in the past.
California markets have seen
the biggest shift toward buyers since last January, led by
San Jose, which has seen the most
significant swing. San Francisco,
San Diego, Los Angeles and Denver round out the top five markets where
buyers will have an easier time navigating the market than they
would have in recent years.
Even though San Jose and
San Francisco have cooled
exceptionally, they are still the hottest markets compared with
others around the country, markets where listings see few price
cuts, homes don't stay on the market for long, and sale-to-list
price ratios are higher. In these two Bay Area markets, home prices
are so prohibitive, the typical buyer must put more than a 20
percent down to keep mortgage payments at or below 30% of monthly
household income.
San Jose buyers would need a 49
percent down payment, or $614,100,
nearly three times as much as the national median home value.
Buyers in San Francisco (43
percent), Los Angeles (43 percent)
and San Diego (31 percent) would
also need to put down more than 20 percent.
"It is no surprise that the markets which pushed the bounds of
affordability over the housing recovery are now experiencing
significant cooling," said Skylar
Olsen, Zillow Director of Economic Research. "As down
payments and mortgage payments far outpaced incomes, buyer demand
eventually exhausted itself. Those buyers looking in cooling
markets will likely welcome the relief, although the entry price is
still high. Inventory is returning and spending more time on
market, meaning their decision making can be made with a cooler
head."
While some of the hottest markets slowed down over the past
year, others have become more seller-friendly. Miami – which tends to see large fluctuations
– has seen the biggest overall shift toward favoring sellers over
the past year, with homes selling about a week faster than they did
a year ago.
Markets That Have Cooled (Ranked in Order of Biggest
Cooldown)
Metro
|
Median
Home Value
|
Listings with
a Price Cut
|
Sale-to-List
Price Ratio
|
Days on
Market
|
San Jose,
CA
|
$1,245,800
|
15.3
|
97.2%
|
61
|
San Francisco,
CA
|
$957,400
|
11.5
|
98.6%
|
57
|
San Diego,
CA
|
$591,400
|
21.3
|
95.7%
|
75
|
Los Angeles-Long
Beach-Anaheim, CA
|
$652,300
|
17.4
|
97.1%
|
75
|
Denver, CO
|
$405,300
|
18.1
|
97.2%
|
65
|
Dallas-Fort Worth,
TX
|
$242,600
|
19.9
|
96.9%
|
71
|
Seattle,
WA
|
$489,700
|
15.2
|
96.6%
|
77
|
Sacramento,
CA
|
$408,700
|
17.3
|
96.9%
|
67
|
Portland,
OR
|
$397,300
|
18.8
|
96.8%
|
80
|
Riverside,
CA
|
$367,100
|
17.5
|
96.7%
|
83
|
Las Vegas,
NV
|
$277,900
|
22.8
|
96.9%
|
69
|
Charlotte,
NC
|
$206,200
|
16.8
|
96.9%
|
71
|
Tampa, FL
|
$213,600
|
23.2
|
95.6%
|
75
|
San Antonio,
TX
|
$192,800
|
20.0
|
98.6%
|
77
|
Austin, TX
|
$308,200
|
19.1
|
95.1%
|
74
|
Kansas City,
MO
|
$191,600
|
14.5
|
98.2%
|
66
|
Boston, MA
|
$467,000
|
15.5
|
97.1%
|
74
|
Chicago,
IL
|
$224,800
|
18.2
|
94.2%
|
102
|
Columbus,
OH
|
$189,900
|
16.5
|
96.6%
|
71
|
Atlanta,
GA
|
$217,500
|
16.1
|
97.0%
|
77
|
Markets That Have Heated Up (Ranked in Order of Biggest
Increase)
Metro
|
Median
Home Value
|
Listings with
a Price Cut
|
Sale-to-List
Price Ratio
|
Days on
Market
|
Miami-Fort
Lauderdale, FL
|
$283,800
|
16.7
|
93.9%
|
99
|
Houston,
TX
|
$205,500
|
19.4
|
94.8%
|
89
|
Pittsburgh,
PA
|
$143,900
|
16.8
|
93.7%
|
87
|
Philadelphia,
PA
|
$232,700
|
17.9
|
95.7%
|
90
|
St. Louis,
MO
|
$167,000
|
16.1
|
95.7%
|
76
|
Cincinnati,
OH
|
$168,900
|
15.7
|
95.6%
|
74
|
Cleveland,
OH
|
$145,600
|
15.5
|
94.5%
|
82
|
Phoenix,
AZ
|
$264,900
|
19.2
|
97.4%
|
61
|
Detroit,
MI
|
$160,000
|
17.5
|
94.7%
|
78
|
Indianapolis,
IN
|
$163,900
|
17.9
|
97.0%
|
70
|
Orlando,
FL
|
$237,100
|
20.4
|
95.8%
|
84
|
Baltimore,
MD
|
$267,900
|
19.2
|
96.4%
|
97
|
New York,
NY
|
$438,300
|
14.6
|
95.7%
|
132
|
Washington,
DC
|
$406,200
|
14.8
|
97.4%
|
82
|
Minneapolis-St Paul,
MN
|
$268,100
|
14.4
|
97.1%
|
74
|
Zillow
Zillow is the leading real estate and rental
marketplace dedicated to empowering consumers with data,
inspiration and knowledge around the place they call home, and
connecting them with great real estate professionals. In addition,
Zillow operates an industry-leading economics and analytics bureau
led by Zillow Group's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of
economists, data analysts, applied scientists and engineers produce
extensive housing data and research covering more than 450 markets
at Zillow Real Estate Research. Zillow also sponsors the quarterly
Zillow Home Price Expectations Survey, which asks more than 100
leading economists, real estate experts and investment and market
strategists to predict the path of the Zillow Home Value Index over
the next five years. Launched in 2006, Zillow is owned and operated
by Zillow Group, Inc. (NASDAQ:Z and ZG), and headquartered in
Seattle.
Zillow is a registered trademark of Zillow, Inc.
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