As the spring homebuying season ramps up, prospective buyers in the Northeast are facing fierce competition, while shoppers in the Sun Belt are finding more negotiating power, according to new data from Zillow.
The analysis released Thursday shows a stark contrast between markets. In cities like Buffalo, New York; Boston; Hartford, Connecticut; and Providence, Rhode Island, there are at least 10 engaged home shoppers for every home on the market.
These markets also see homes sell within 10 days, with more than half going for more than asking price — a clear sign of bidding wars.
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“This spring, we’re seeing signs of a more balanced housing market. Inventory is up 20% over last year, and about 1 in every 4 sellers are cutting prices,” Zillow senior economist Orphe Divounguy said in a statement.
“Still, there are areas where competition is intense and there are bidding wars for most homes. To compete in these markets, buyers need their finances in order, full visibility into what’s for sale and an agent who is an expert negotiator in their corner.”
Nationwide, the housing market is showing signs of easing. While affordability challenges remain, inventory has risen as more sellers list their homes and price cuts have become more common.
About 25% of sellers reduced their asking price in April — the highest rate for that month in the history of Zillow’s dataset.
In contrast to the Northeast, buyers in Sun Belt cities often have a better chance of securing a home without entering a bidding war.
Of the 14 major metro areas with fewer engaged home shoppers per listing than the national average, 12 are located in the Sun Belt. Miami and Houston lead the pack. Miami recorded buyer competition of only 2.6 engaged home shoppers per listing.
In these less competitive markets, Zillow said that sellers may need to work harder to attract buyers. Data shows that homes listed on a multiple listing service typically sell for 1.5% more than those sold off the MLS.
The report added that nearly 91% of surveyed buyers believe they should be able to see all listings for free, without barriers.
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