In the latest report from Seattle, Washington based Zillow released on Tuesday, San Francisco and San Jose, California top the list of best locations for the seller’s market. Other cities that made the best sellers list includes Denver, Seattle, and Sacramento. Homes in these five locations usually stay on the market for approximately 54 days and rarely see a decrease in home values.
These west coast’ markets have been the driving force in the real estate industry for over a year. The increase in the job market has attracted newcomers, causing a spike in the housing market. In the Pacific Northwest alone Portland leads the nation with a14 percent rise in home values, with Seattle closely behind with a 12 percent increase.
“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. "Many of these markets are also experiencing above-average housing demand coupled with limited inventory, putting sellers in the driver's seat.”
Meanwhile, buyers will see less competition in cities like Baltimore, Miami, Philadelphia, Chicago, and Houston. On average, homes in these regions have a DOM of 103. During 2016, Philadelphia homes saw a price increase of just under 5 percent, while Baltimore saw an increase of just under 4 percent. “On the flip side, several 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 commented.
Even though the market is currently not favoring the buyer in the nation’s growing cities, Zillow sees this trend changing in the future, with the market flipping to a buyers’ market in 2018/2019. “Zillow expects national home values to slow down from a nearly 7 percent appreciation rate to 3.5 percent by the end of 2017,” the report stated.
To full Zillow’s full list of Top Sellers’ and Buyers’ Markets, click here.