Homebuyers gain leverage as sellers cut prices: Zillow

In January, almost 23% of sellers reduced their listing price — the highest percentage for any January since 2018, according to a new analysis by Zillow

Prospective homebuyers have a better shot at beating out the competition and securing a dream home as sellers continue to lower listing prices, according to a new analysis by Zillow.

Despite persistently high mortgage rates, buyers are capitalizing on these price reductions to negotiate better deals. Zillow’s market heat index indicates that buyers had more negotiation power in January than at any point in the past five years.

Skylar Olsen

“Homeowners are finally coming back to the market as the effects of rate lock ease over time, but buyers are still struggling with high monthly costs,” Zillow Chief Economist Skylar Olsen said.

“Sellers are in a good position and are willing to make price cuts to close a deal. Home equity is near record highs, and the general economy and financial markets are surprisingly strong. Homes are selling faster than they did before the pandemic.”

 

Homes that sold typically went under contract within 38 days. In expensive coastal metros, including San Jose, California; Boston; Seattle; and Washington, D.C., homes sold within two weeks or less. In contrast, sales moved more slowly in the South, with New Orleans, Atlanta and several Texas and Florida cities experiencing the most relaxed pace.

Source:  https://www.inman.com/2025/02/12/homebuyers-gain-leverage-as-sellers-cut-prices-zillow/

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