Buyer’s or seller’s housing market? Zillow’s new rating for 250 major markets

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Zillow economists use an financial mannequin often known as the Zillow Market Warmth Index to gauge the competitiveness of housing markets throughout the nation.

This mannequin seems at key indicators—together with dwelling value adjustments, stock ranges, and days on market—to generate a rating displaying whether or not a market favors sellers or patrons.

Larger scores level to hotter, seller-friendly metro housing markets. Decrease scores sign cooler markets the place patrons maintain extra negotiating energy.

Based on Zillow:

• Rating of 70 or above = robust vendor’s market
• Rating from 55 to 69 = vendor’s market
• Rating from 44 to 55 = impartial market
• Rating from 28 to 44 = purchaser’s market
• Rating of 27 or beneath = robust purchaser’s market

Nationally, Zillow charges the U.S. housing market at 55 in its Might 2025 studying, printed this week.

That stated, Zillow’s studying varies considerably throughout the nation.

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Among the many 250 largest metro space housing markets, these 10 are the HOTTEST markets, the place sellers have essentially the most energy:

1. Rochester, NY → 145
2. Buffalo, NY → 110
3. Syracuse, NY 100
4. Charleston, WV → 99
5. Albany, NY → 97
6. Hartford, CT → 89
7. Lansing, MI → 85
8. Anchorage, AK → 83
9. Springfield, MA → 82
10. Manchester, NH → 81

Among the many 250 largest metro space housing markets, these 10 are the COLDEST markets, the place patrons have essentially the most energy:

1. Macon, GA → 23
2. Jackson, TN → 24
3. Brownsville, TX → 27
4. Gulfport, MS → 27
5. Naples, FL → 27
6. Longview, TX → 27
7. Daphne, AL → 29
8. Punta Gorda, FL → 29
9. Beaumont, TX → 30
10. Cape Coral, FL → 31

Does ResiClub agree with Zillow’s evaluation?

Directionally, I consider Zillow has appropriately recognized many regional housing markets the place patrons have gained essentially the most energy—significantly across the Gulf—in addition to markets the place sellers have maintained (comparatively talking) considerably of a grip, together with giant parts of the Northeast and Midwest.

Primarily based on my private housing evaluation, I take into account Southwest Florida the weakest/softest chunk of the U.S. housing market. Not too far behind are pockets of Texas, Colorado, and Arizona markets the place there’s constructed up unsold spec stock.

In my opinion, many West Coast markets are softer proper now than Zillow’s evaluation suggests—specifically, the areas which have lately seen massive jumps in energetic stock on the market.

What did this Zillow evaluation appear like again in spring 2021 throughout the Pandemic Housing Growth? Under is Zillow’s Might 2021 studying—printed in June 2021.