Spring Housing Market Shaping Up As Tale of Two Coasts: West Coast More Favorable for Sellers; East, Midwest Best for Buyers

Bay Area, San Antonio, Los Angeles Top Zillow Ranking of Sellers' Markets; Cleveland, Philadelphia & Tampa Cap Buyers' List, According to Zillow
- The U.S. Zillow Home Value Index rose to $169,200 in February, up 5.6 percent year-over-year.
- U.S. home values expected to rise another 3 percent through February 2015.
- The number of homes listed for sale on Zillow was up 5.5 percent annually in February.

PR Newswire

SEATTLE, March 19, 2014 /PRNewswire/ -- As the spring home shopping season heats up, buyers and sellers nationwide can expect very different experiences when it comes to negotiating power. According to the latest Zillow® analysis[i] of national buyers' and sellers' markets, sellers in the West will likely have the upper hand in negotiations when selling their home, while buyers in Midwestern and East Coast metros will likely face less competition and have more room for bargaining on prices.

In this analysis, a sellers' market is not necessarily one where home values are rising, but rather one in which homes are on the market for a shorter time, price cuts occur less frequently and homes are sold at prices very close to (or greater than) their last listing price. In buyers' markets, homes for sale stay on the market longer, price cuts occur more frequently and homes are sold for less relative to their listing price.

Top 10 Sellers' Markets

Top  10 Buyers' Markets

1.

San Jose

1.

Cleveland

2.

San Francisco

2.

Philadelphia

3.

San Antonio

3.

Tampa

4.

Los Angeles

4.

Chicago

5.

Seattle

5.

Pittsburgh

6.

Riverside

6.

Cincinnati

7.

Denver

7.

New York

8.

Washington, D.C.

8.

Detroit

9.

Sacramento

9.

Baltimore

10.

Dallas-Fort Worth

10.

St. Louis

"The real estate data in markets on both coasts are telling markedly different stories. Relatively strong job markets in the West are helping spur robust demand, which is being met with limited supply, causing rapid home value appreciation and giving sellers an edge. In the East, housing markets are appreciating a bit more slowly, and homes are staying on the market longer, which helps give buyers the upper hand," said Zillow Chief Economist Dr. Stan Humphries. "In general, buyers in sellers' markets this spring can expect tight inventory, increased competition and a greater sense of urgency. Sellers in buyers' markets may need to be prepared to lower their asking price, or to wait longer for the perfect buyer to come along. As we put the housing recession further in the rear-view mirror, the broad-based dynamics that applied during those days, when all markets were reacting similarly to nationwide economic conditions, are fading. Real estate has always been local, and as the spring market gains momentum, this old adage will only become more pronounced."

The U.S. Zillow Home Value Index (ZHVI)[ii] inched up again last month, to $169,200, according to the February Zillow Real Estate Market Reports[iii]. But both monthly and annual U.S. home value appreciation slowed to their lowest paces in months. National home values were almost flat in February from January, and were up 5.6 percent from February 2013.

The pace of home value growth has slowed in recent months as more inventory of for-sale homes has helped meet demand. Nationwide, while inventory remains tight, the number of homes listed for sale on Zillow was up 5.5 percent annually in February[iv]. For the 12-month period from February 2014 to February 2015, national home values are expected to rise another 3 percent to approximately $174,285, according to the Zillow Home Value Forecast[v].

National rents rose in February from January, up 0.2 percent to a Zillow Rent Index (ZRI)[vi] of $1,310. Year-over-year, national rents were up 2.8 percent in January.

Metropolitan Area

 February
2014 ZHVI

Year-Year
% Change
in ZHVI

 February
2014 ZRI

Year-Year
% Change
in ZRI

Year-Year
% Change
in For-Sale
Inventory

United States

$169,200

5.6%

$         1,310

2.8%

5.5%

New York, NY

$370,800

6.7%

$         2,282

1.6%

3.5%

Los Angeles, CA

$503,400

16.0%

$         2,356

2.4%

5.2%

Chicago, IL

$177,800

8.3%

$         1,615

7.1%

-7.4%

Dallas-Fort Worth, TX

$142,900

7.7%

$         1,381

4.0%

-14.8%

Philadelphia, PA

$193,000

2.4%

$         1,517

2.3%

0.2%

Houston, TX

$154,200

4.1%

$         1,416

4.8%

-16.2%

Washington, DC

$344,900

8.1%

$         2,072

0.0%

11.8%

Miami-Fort Lauderdale, FL

$187,800

17.7%

$         1,739

6.9%

0.5%

Atlanta, GA

$137,100

14.1%

$         1,188

3.8%

7.9%

Boston, MA

$349,300

6.5%

$         2,060

4.5%

-18.1%

San Francisco, CA

$648,700

17.7%

$         2,676

6.1%

-5.1%

Detroit, MI

$106,800

17.6%

$         1,051

1.9%

-4.9%

Riverside, CA

$260,200

25.0%

$         1,599

0.7%

21.3%

Phoenix, AZ

$187,600

9.9%

$         1,165

0.7%

30.9%

Seattle, WA

$312,400

9.7%

$         1,751

8.0%

4.2%

Minneapolis-St Paul, MN

$196,500

6.4%

$         1,510

3.9%

9.9%

San Diego, CA

$445,100

15.1%

$         2,206

4.2%

-13.5%

St. Louis, MO

$130,800

-2.5%

$         1,099

0.4%

2.6%

Tampa, FL

$135,900

15.3%

$         1,226

2.8%

11.8%

Baltimore, MD

$236,000

4.5%

$         1,690

1.6%

6.1%

Denver, CO

$243,600

7.0%

$         1,667

7.6%

-10.9%

Pittsburgh, PA

$119,600

5.1%

$         1,070

10.0%

3.8%

Portland, OR

$261,600

10.8%

$         1,488

5.0%

1.6%

Sacramento, CA

$305,800

19.5%

$         1,565

3.0%

24.0%

San Antonio, TX

$152,400

4.3%

$         1,249

3.3%

-16.9%

Orlando, FL

$155,700

18.4%

$         1,287

5.8%

19.4%

Cincinnati, OH

$130,100

2.0%

$         1,177

10.2%

-6.2%

Cleveland, OH

$115,000

0.7%

$         1,127

2.5%

-6.4%

Kansas City, MO

$143,800

0.5%

$         1,130

2.6%

-4.0%

Las Vegas, NV

$170,000

24.9%

$         1,177

2.3%

36.3%

San Jose, CA

$748,800

13.5%

$         2,819

6.1%

-12.5%

Columbus, OH

$137,200

7.1%

$         1,220

4.3%

-6.1%

Charlotte, NC

$147,800

5.5%

$         1,166

1.0%

7.6%

Indianapolis, IN

$134,700

6.9%

$         1,182

5.7%

-5.4%

Austin, TX

$218,600

8.0%

$         1,559

7.2%

-15.9%

About Zillow:
Zillow, Inc. (NASDAQ:Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts 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. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage MarketplaceZillow Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Agentfolio®, Mortech®, HotPads™ and StreetEasy®. The company is headquartered in Seattle.

Zillow.com, Zillow, Zestimate, Postlets, Mortech, Diverse Solutions, StreetEasy and Agentfolio are registered trademarks of Zillow, Inc. HotPads and Zillow Digs are trademarks of Zillow, Inc.

[i] Zillow's Buyer/Seller Analysis ranked data on actual sales prices compared to asking prices, the number of days listings spent on Zillow and the percentage of homes on the market with a price cut, and ranked the 35 largest metro areas in the country to determine whether buyers or sellers have more negotiating power in a given market.
[ii] The Zillow Home Value Index is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.
[iii] The Zillow Real Estate Market Reports are a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Real Estate Research. For more information, visit www.zillow.com/research/. The data in Zillow's Real Estate Market Reports are aggregated from public sources by a number of data providers for 930 metropolitan and micropolitan areas dating back to 1996. Mortgage and home loan data are typically recorded in each county and publicly available through a county recorder's office. All current monthly data at the national, state, metro, city, ZIP code and neighborhood level can be accessed at www.zillow.com/local-info/ and www.zillow.com/research/data.
[iv] Each week, a count of the number of single-family, condominium and cooperative housing units listed for sale on Zillow is taken. The median of these values within a month is calculated as the monthly value. Because inventory can be seasonal, a seasonally adjusted value is reported using a standard STL procedure. This seasonally adjusted series is then smoothed using a three-month rolling average. More information is available at www.zillow.com/research.
[v] The Zillow Home Value Forecast uses data from past home value trends and current market conditions, including leading indicators like home sales, months of housing inventory supply and unemployment, to predict home values over the next 12 months for the nation and for more than 250 markets across the country.
[vi] The Zillow Rent Index is the median Rent Zestimate® (estimated monthly rental price) for a given geographic area on a given day, and includes the value of all single-family residences, condominiums, cooperatives and apartments in Zillow's database, regardless of whether they are currently listed for rent. It is expressed in dollars.

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