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In its latest market report, Zillow rated New York City fifth in best buyer’s markets across the country. The rankings were determined by price cuts, inventory and days on the market to point at which markets benefit buyers over sellers.
Zillow’s analysis indicates that buyers are less likely to face bidding wars in New York City, where they also might find themselves with more bargaining power.
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Philadelphia came in at number one on the list, followed by Chicago, Baltimore and Hartford. Miami took the number six spot, while Indianapolis, Jacksonville, Virginia Beach and Orlando filled out the bottom of the list of best buyer’s markets.
Location vs. buying power, according to Zillow
Zillow chief economist Dr. Svenja Gudell illustrated how the buyer/seller analysis helps individuals make smarter decisions subject to their location.
While buyers in a seller’s market must move fast because higher demand takes homes off the market more quickly, buyers in markets like New York City have a little more leeway. Nonetheless, outside factors like inventory can shift the ability for buyers to remain totally in control, according to Gudell.
“In a buyers’ market, they [homebuyers] can afford to take their time and be more selective. However, low inventory is a factor affecting the majority of the country, so buyers should be prepared for a limited selection as we enter the home buying season,” she said.
Home values in 2015: NYC compared to the west
Zillow also stressed the importance of home values both nationally and metro-specific as buyers and sellers examine their negotiating authority.
For New Yorkers, home values in New York/Northern New Jersey have appreciated 2.1 percent over the past year. The January 2016 Zillow Home Value Index for New York/Northern New Jersey metro was $382,400, which was beat out only by San Jose, San Francisco, Los Angeles-Long Beach-Anaheim, San Diego and Boston.
Meanwhile, markets in the west like San Jose saw 12.9 year-over-year home value appreciation, and Portland properties grew 12.8 percent year-over-year. Denver home values presented 15.4 appreciation, while San Francisco saw a 12 percent rise in home values between January 2014 and 2015.
Miami also topped the list for home value growth with 10.5 percent year-over-year appreciation. Dallas-Fort Worth featured a 14.2 percent rise in home values last month.
Nationally, home values rose 4.2 percent to reach a Zillow Home Value Index of $184,000. In January, the national market hit its tenth-straight month for U.S. property price escalation.
Rent still rising in New York
As one of the priciest rental markets in the nation, leasing prices are still growing for NYC apartment hunters. Zillow Rent Index — the website’s valuation of rental units — grew another 4.9 percent across New York/Northern New Jersey year-over-year in January.
Other surging rental markets included San Francisco, the only metro featuring double-digit value increase with 11.4 percent growth. San Jose’s Rent Index also grew 8.3 percent, while Los Angeles-Long Beach-Anaheim lagged comparatively to its California counterparts with 3.9 percent appreciation.
Seattle’s Rent Index grew 7.2 percent, while Portland grew 9.2 percent. Boston also had 6 percent rent value growth, and Denver featured an 8 percent rise in its Rent Index.
With rents continuing to rise and an optimistic outlook for buyers in the field– combined with current low interest rates– NYC residents with the savings to spend might be ready to switch.
