On the other end of the spectrum, the Chicago, Milwaukee and Cleveland metros are still buyers' markets, with homes taking longer to sell and buyers logging average discounts of 5% off the asking price.
Zillow analyzed data on sale to list price ratio, number of days listings spent on Zillow and percentage of homes on the market with a price cut, and ranked the 50 largest metro areas to determine whether buyers or sellers have more negotiating power in a given market.
In this analysis, a sellers' market is not necessarily one where home values are rising, but is a market where sellers are more likely to sell their home for close to asking price and where listings spend less time on the market. A buyers' market is one where buyers have more bargaining power, thanks to listings lingering longer on the market and sellers being forced to cut asking prices.
‘It's refreshing to see some markets swinging back in favour of sellers, with asking prices being met and listings spending fewer days on market,’ said Zillow chief economist Stan Humphries.
‘The housing recession has been long and rocky, and we're seeing more balance during this summer selling season. Of course, many markets are still firmly in favour of buyers, and we expect that to continue until the recovery takes more of a hold nationwide,’ he explained.
‘It may seem counterintuitive that some of the best markets for sellers are those that have seen the largest price drops since the housing recession began. However, this is likely due to investor interest, as many are buying distressed and non-distressed homes in bulk and transforming them into rentals. This investor activity is driving up prices for all homes in these markets,’ he added.
The top ten sellers’ markets are San Jose, San Francisco, Las Vegas, Sacramento, Phoenix, Riverside, Washington DC, Los Angeles, Salt Lake City and Austin.
The top ten buyer’s markets are Chicago, Milwaukee, Cleveland, New York, Philadelphia, Jackonsville, Providence, Cincinnati, Hartford and Houston.
