Sellers Still Rule in Bay Area; Gaining Power in Denver, Seattle, Dallas-Fort Worth

SEATTLE, April 22, 2015 -- Zillow's Spring analysis of buyers' and sellers' bargaining power in housing markets across the country found bidding wars and red hot prices in the Bay Area, but also in new hot markets outside California.

Denver, Seattle and Dallas-Fort Worth joined San Jose and San Francisco in the top 5 best markets for sellers. Homes there are flying off the market at or above asking prices, giving sellers the upper hand. In sellers' markets, homes sell an average of 48 days faster than those for sale in buyers' markets.

On the other end of the spectrum, buyers will face less competition and have room to bargain on prices in the nation's top buyers' markets: Philadelphia, Chicago, Cleveland, and Miami. In buyers' markets, home shoppers can expect an average 3.9 percent discount off the final sale price. In sellers' markets, the average discount is less than 1 percent.

In Zillow's analysis, a sellers' market is not necessarily one where home values are rising, but one where homes sell quickly at prices very close to (or greater than) their listing price. In buyers' markets, homes are on the market longer, price cuts occur more frequently and sell for less than their asking price.

"In general, while the market remains more in sellers' favor, it is slowly tilting toward buyers this year, thanks to more inventory, slower home value gains and less competition from investors," said Zillow Chief Economist Dr. Stan Humphries. "But what's true in one market may not be true in others, and buyers and sellers will face different challenges and opportunities depending on local conditions. Sellers in buyers' markets should remain patient and take even small steps to make their home more attractive to buyers and help it stand out. Buyers in sellers' markets should never feel pressured to pay more than they're comfortable with and capable of."

Nationally, as expected, real estate markets are increasingly easy to get into, with home prices leveling off, giving hope to homebuyers who have fought low inventory and fast rising home values. The U.S. Zillow Home Value Index (ZHVI) was up 3.9 percent year-over-year for the first quarter of 2015, to $178,400. Home values are expected to grow 2.6 percent over the next year.

Rents rose almost as much as home values over the last year, up 3.7 percent to $1,362 median monthly Zillow Rent Index (ZRI). By the end of the year, Zillow expects growth in rents to outpace growth in home values.

About Zillow

Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. In 2015, Dr. Humphries co-wrote and published the New York Times' bestselling "Zillow Talk: The New Rules of Real Estate." 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. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z), and headquartered in Seattle.