SEATTLE, WA — The spring home shopping season is unveiling a starkly divided real estate landscape, according to the latest market analysis from Zillow®. Buyers in coastal California cities and Seattle are encountering surging prices and fierce competition, with San Jose leading the charge at a 3.3% monthly home value growth. In contrast, Southern metros like New Orleans and San Antonio are experiencing more subdued appreciation rates, just over 0.5%.
This disparity is largely attributed to inventory levels. The priciest markets, also among the 50 largest in the U.S., are seeing limited new listings, partly because current homeowners are hesitant to sell due to the higher costs of buying anew at today’s rates. This scenario has triggered bidding wars over the few available homes, with many selling above asking price.
Conversely, regions such as the South, where inventory has rebounded closer to pre-pandemic levels, are witnessing less competitive and more balanced markets. Here, new construction acts as a crucial outlet for those looking to upgrade, contributing to a healthier flow of listings and more stable price appreciation.
The report also highlights a nationwide trend: homes are selling rapidly, often in just 13 days, albeit slightly slower than during the peak pandemic years. However, the median age of listings stands at 43 days, indicating a significant portion are staying on the market longer.
Significantly, more than one in five sellers nationwide had to cut their list price in March, a record high for this time of year. Meanwhile, nearly 27% of homes sold for more than their listing price in February, underscoring the importance of pricing strategies and property presentation in today’s fragmented market.
This bifurcation underscores a broader narrative in the U.S. housing market: while some areas grapple with affordability and accessibility, others are cooling off, presenting opportunities for buyers previously sidelined by the frenzied competition. As the market continues to evolve, both buyers and sellers will need to adapt their strategies to navigate these contrasting dynamics effectively.
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