A recent report from Zillow ranks San Francisco as the #2 metropolitan area for home sellers in the country this spring, with San Jose taking the #1 spot. The report ranked the home values in these two communities as the highest in the nation.
Besides San Francisco and San Jose, the analysis showed the major sellers’ markets today include Los Angeles and San Antonio. These rankings are based on several factors including:
- Shortest time on market
- Highest sales-price-to-list-price ratio
- Lowest frequency of price reductions
“Relatively strong job markets in the West are helping spur robust demand, which is being met with limited supply, causing rapid home value appreciation and giving sellers an edge,” Zillow Chief Economist Dr. Stan Humphries said in a statement.
What does this mean for those who are selling their homes in the Bay Area? Well, it’s simple. In a sellers market like this, price cuts are rare because there’s a tremendous amount of competition and a very limited inventory. In fact, bidding wars are the norm for prime properties in our market where luxury homes are selling above asking price.
While Zillow shows home sellers are thriving here in the West, the situation is reversed in the Cleveland, Philadelphia and Tampa metros. These are topping out the buyers markets list because homes take longer to sell and there’s less competition in the marketplace; creating more room for bargaining on prices.
“The real estate data in markets on both coasts are telling markedly different stories. Relatively strong job markets in the West are helping spur robust demand, which is being met with limited supply, causing rapid home value appreciation and giving sellers an edge. In the East, housing markets are appreciating a bit more slowly, and homes are staying on the market longer, which helps give buyers the upper hand,” said Humphries. He added, “In general, buyers in sellers’ markets this spring can expect tight inventory, increased competition and a greater sense of urgency. Sellers in buyers’ markets may need to be prepared to lower their asking price, or to wait longer for the perfect buyer to come along. As we put the housing recession further in the rear-view mirror, the broad-based dynamics that applied during those days, when all markets were reacting similarly to nationwide economic conditions, are fading. Real estate has always been local, and as the spring market gains momentum, this old adage will only become more pronounced.”
If you are considering putting your home on the market in any of the communities I specialize in, now is the perfect time to act. I look forward to helping you sell your current home while finding your new dream home in the Bay Area. Just check my website at www.DanielDerVartanian.com, email me at Daniel.DerVartaian@sothebyshomes.com or give me a call at (415) 200-7744. With vision, perseverance, unsurpassed marketing and negotiating skills, I am here to help in all your real estate needs.