Photo: Mike Behnken/Flickr
According to a new market report by the online listing site Zillow, the West Coast is home to many of the country’s top real estate markets for home sellers. Conversely, homebuyers will on average fare better on the East Coast, says Zillow’s data.
In order to determine which markets were favorable to buyers or sellers, Zillow examined the listing length and the percentage of listings with a price reduction of a metro area on its site. In a market that favors sellers, homes will be on the market for a shorter period of time and will have fewer reductions in price. While in a buyers’ market, homes will be listed for longer and more listings will have price reductions.
Eight of the top 10 US real estate markets that favor sellers right now are on the West Coast, and five of those are located in the state of California. Listings on the West Coast rarely saw price reductions and were listed for an average of 54 days.
San Francisco and San Jose, two of California’s perennially-hot housing markets, claimed the top two spots on Zillow’s top 10 markets for sellers list.
Only 5.4 percent of sellers in San Francisco reduced their listing price on Zillow and homes were listed on the site for a median of 51 days. Meanwhile, 6 percent of listings in San Jose had price reductions and homes were listed on Zillow for a median of 50 days.
The other West Coast metros that made the top ten were Denver, CO, Seattle, WA, Sacramento, CA, Portland, OR, Los Angeles, CA, and San Diego, CA.
West Coast markets like Seattle, Denver and Portland have “been driving the market” for the last year, according to Zillow.
Strong job growth in many of these metros is drawing buyers to the West Coast, which in turn causes demand for housing to soar. Portland and Seattle, in particular, have experienced very high home value growth over the last 12 months with Portland leading the country in price growth, says Zillow. Home values rose 14 percent year-over-year in Portland, while Seattle saw a 12 percent increase over the same period.
Meanwhile, the only two non-West Coast metros to make the top 10 were Charlotte, NC and Boston, MA — in the number 9 and 10 spots respectively.
Homebuyers, on the other hand, will find the housing market more agreeable on the East Coast. Homes in these metros were listed on Zillow for an average of 103 days, and most have home values appreciating at a slower pace than the rest of the country, says Zillow.
Baltimore, MD, where almost 13 percent of listings had price reductions, topped the list of top 10 housing markets for buyers. Homes in Baltimore were listed on Zillow for a median of 104 days. Home values appreciated at 4 percent in Baltimore in 2016, according to Zillow — well below the nearly 7 percent national average for the same period.
The other top markets currently tipped in favor of buyers were Miami, Fl, Philadelphia, PA, Chicago, IL, Houston, TX, Indianapolis, IN, Detroit, MI, Tampa, FL, Orlando, FL, and Washington, DC.
“The overall recovery has been more robust in many coastal markets, especially on the West Coast, with fast home value appreciation, strong job growth and solid income gains,” said Zillow Chief Economist Dr. Svenja Gudell in a digital release.
Gudell pointed out that many of these West Coast markets are similarly seeing high demand coupled with limited inventory, which puts “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,” Gudell said of the buyers’ markets.
Click here to read the entire report.