In 20 of the 35 largest U.S. metros, market conditions favor buyers more than they did a year ago, according to the Zillow®Buyer-Seller Index out Thursday.
California markets have seen the biggest shift toward buyers since last January, led by San Jose, which has seen the most significant swing. San Francisco, San Diego, Los Angeles and Denver round out the top five markets where buyers will have an easier time navigating the market than they would have in recent years.
Even though San Jose and San Francisco have cooled exceptionally, they are still the hottest markets compared with others around the country, markets where listings see few price cuts, homes don't stay on the market for long, and sale-to-list price ratios are higher. In these two Bay Area markets, home prices are so prohibitive, the typical buyer must put more than a 20% down to keep mortgage payments at or below 30% of monthly household income.
San Jose buyers would need a 49% down payment, or $614,100, nearly three times as much as the national median home value. Buyers in San Francisco (43%), Los Angeles (43%) and San Diego (31%) would also need to put down more than 20%.
"It is no surprise that the markets which pushed the bounds of affordability over the housing recovery are now experiencing significant cooling," said Skylar Olsen, Zillow Director of Economic Research. "As down payments and mortgage payments far outpaced incomes, buyer demand eventually exhausted itself. Those buyers looking in cooling markets will likely welcome the relief, although the entry price is still high. Inventory is returning and spending more time on market, meaning their decision making can be made with a cooler head."
While some of the hottest markets slowed down over the past year, others have become more seller-friendly. Miami – which tends to see large fluctuations – has seen the biggest overall shift toward favoring sellers over the past year, with homes selling about a week faster than they did a year ago.
Markets That Have Cooled (Ranked in Order of Biggest Cooldown)
Metro | Median | Listings with | Sale-to-List | Days on |
San Jose, CA | $1,245,800 | 15.3 | 97.2% | 61 |
San Francisco, CA | $957,400 | 11.5 | 98.6% | 57 |
San Diego, CA | $591,400 | 21.3 | 95.7% | 75 |
Los Angeles-Long Beach-Anaheim, CA | $652,300 | 17.4 | 97.1% | 75 |
Denver, CO | $405,300 | 18.1 | 97.2% | 65 |
Dallas-Fort Worth, TX | $242,600 | 19.9 | 96.9% | 71 |
Seattle, WA | $489,700 | 15.2 | 96.6% | 77 |
Sacramento, CA | $408,700 | 17.3 | 96.9% | 67 |
Portland, OR | $397,300 | 18.8 | 96.8% | 80 |
Riverside, CA | $367,100 | 17.5 | 96.7% | 83 |
Las Vegas, NV | $277,900 | 22.8 | 96.9% | 69 |
Charlotte, NC | $206,200 | 16.8 | 96.9% | 71 |
Tampa, FL | $213,600 | 23.2 | 95.6% | 75 |
San Antonio, TX | $192,800 | 20.0 | 98.6% | 77 |
Austin, TX | $308,200 | 19.1 | 95.1% | 74 |
Kansas City, MO | $191,600 | 14.5 | 98.2% | 66 |
Boston, MA | $467,000 | 15.5 | 97.1% | 74 |
Chicago, IL | $224,800 | 18.2 | 94.2% | 102 |
Columbus, OH | $189,900 | 16.5 | 96.6% | 71 |
Atlanta, GA | $217,500 | 16.1 | 97.0% | 77 |
Markets That Have Heated Up (Ranked in Order of Biggest Increase)
Metro | Median | Listings with | Sale-to-List | Days on Market |
Miami-Fort Lauderdale, FL | $283,800 | 16.7 | 93.9% | 99 |
Houston, TX | $205,500 | 19.4 | 94.8% | 89 |
Pittsburgh, PA | $143,900 | 16.8 | 93.7% | 87 |
Philadelphia, PA | $232,700 | 17.9 | 95.7% | 90 |
St. Louis, MO | $167,000 | 16.1 | 95.7% | 76 |
Cincinnati, OH | $168,900 | 15.7 | 95.6% | 74 |
Cleveland, OH | $145,600 | 15.5 | 94.5% | 82 |
Phoenix, AZ | $264,900 | 19.2 | 97.4% | 61 |
Detroit, MI | $160,000 | 17.5 | 94.7% | 78 |
Indianapolis, IN | $163,900 | 17.9 | 97.0% | 70 |
Orlando, FL | $237,100 | 20.4 | 95.8% | 84 |
Baltimore, MD | $267,900 | 19.2 | 96.4% | 97 |
New York, NY | $438,300 | 14.6 | 95.7% | 132 |
Washington, DC | $406,200 | 14.8 | 97.4% | 82 |
Minneapolis-St Paul, MN | $268,100 | 14.4 | 97.1% | 74 |