An analysis from Zillow shows homebuyers in the Northeast face at least 10 competitors for every home, while home shoppers in the Sun Belt likely have more room to negotiate.
There are 5.5 engaged home shoppers — people who have saved or shared a for-sale listing on Zillow — for every home on the market nationwide. The ratio is greater than 10 to 1 in four Northeast markets: Buffalo, Hartford, Conn., Providence, R.I. and Boston. In each, the typical home sells in 10 days, and more than half sell above list price, a sign of bidding wars.
The five most competitive markets, according to Zillow, are: Buffalo; Hartford, Conn.; Providence, R.I.; Boston and Richmond, Va.
“This spring, we’re seeing signs of a more balanced housing market. Inventory is up 20 percent over last year, and about one in every four sellers are cutting prices,” Zillow Senior Economist Orphe Divounguy said in a release. "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 becoming friendlier to buyers, despite continued affordability challenges, according to Zillow. More sellers than buyers have entered the market so far this spring, causing inventory to rise. Buyers now have more negotiating power than in recent springs, prompting about 25 percent of sellers to cut their price — a record high for April in Zillow’s data.
Buyers will have the best shot at being the only bidder on their dream home in the Sun Belt. Of 14 major metro areas with fewer engaged home shoppers per listing than the national average, 12 are in the Sun Belt. The other two are Salt Lake City and Riverside, Calif.
Buyers have the least competition in Miami, where there are only 2.6 engaged home shoppers per listing.
The five least competitive markets, according to Zillow, are: Miami, Houston, New Orleans, Memphis, Tenn. And San Antonio.