SEATTLE, Oct. 8 /PRNewswire/ — Homebuyers in much of the U.S. are still paying
thousands of dollars below the home’s asking price, but had slightly lessnegotiating power in August than they did in July, according to the August Zillow Real Estate Market Reports. Buyers paid a median $6,525, or 3 percent, less than the last listing price on homes bought in August, down from $7,018, or 3.3 percent, less for homes bought in July.
Negotiating power peaked in January 2009, when buyers were paying 4.5 percent less than last listing price, a median of $10,096. Meanwhile, sellers continue to cut prices on unsold homes. One quarter (24.7percent) of all homes listed for sale on Zillow had at least one listing price reduction as of Oct. 1, 2009. The median U.S. price reduction was 6.6 percent off the original listing price.
Florida homebuyers again in August had the most negotiating power, with buyers in the Vero Beach metropolitan statistical area (MSA) paying 8.9 percent, or a median $20,974, less than the last listing price. Buyers in the Naples MSA paid 8 percent less than list price. The Naples, Daytona Beach, Miami-Fort Lauderdale, Ocala, Lakeland, Punta Gorda, Melbourne, Gainesville, Tampa, Jacksonville and Fort Myers MSAs also ranked, in that order, as the top markets for negotiation.
But in two California markets, buyers paid more than asking price during August. In the El Centro MSA, buyers paid 2.2 percent, or a median $2,479, more than asking price. In the Stockton MSA, buyers paid 1.3 percent, or $2,515, more.
“Negotiating power is a clear reflection of inventory levels, which dropped nationally in August. Tighter supply in some markets is translating into less of a discount off listing price,” said Zillow Chief Economist Dr. Stan Humphries. “Unfortunately, the brisk spring and summer home shopping season is drawing to a close now, and with foreclosures on the rise again, inventory levels will likely head back up in the coming months, leading buyers’ negotiating power to regain the ground it lost in August.”
Top 25 Markets for Negotiating Discounts (ranked by percent difference from last list price to final sale)*
| Region Name | % Discount from List Price | $ Discount from List Price | % of For Sale Listings with Price Reductions | Median % of Price Reduction | Zillow Home Value Index Year-Over-Year Change | Median Days Listed on Zillow |
| Vero Beach MSA | 8.9% | $ 20,974 | 17.22% | 9.26% | -6.65% | 109 |
| Naples MSA | 8.0% | $ 27,155 | 21.76% | 9.84% | -19.80% | 130 |
| Sarasota MSA | 7.9% | $ 19,782 | 21.46% | 8.55% | -14.56% | 109 |
| Panama City MSA | 7.6% | $ 18,160 | 23.20% | 9.29% | -7.75% | 133 |
| Daytona Beach MSA | 7.3% | $ 13,724 | 25.73% | 9.33% | -19.19% | 127 |
| Atlantic City MSA | 7.2% | $ 21,532 | 22.02% | 6.89% | -6.68% | 117 |
| Miami-Ft Laud MSA | 7.0% | $ 17,586 | 19.50% | 11.17% | -18.15% | 96 |
| Morristown MSA | 6.9% | $ 12,118 | 21.06% | 6.58% | -14.32% | 139 |
| Ocala MSA | 6.5% | $ 8,565 | 24.98% | 10.22% | -10.26% | 74 |
| Lakeland MSA | 6.4% | $ 9,691 | 21.51% | 9.09% | -21.07% | 111 |
| Punta Gorda MSA | 6.3% | $ 10,716 | 17.84% | 9.82% | -9.55% | 130 |
| Toledo MSA | 6.3% | $ 7,472 | 25.04% | 7.70% | -6.62% | 110 |
| Melbourne MSA | 6.2% | $ 11,138 | 22.40% | 9.09% | -14.64% | 119 |
| Gainesville MSA | 5.9% | $ 10,598 | 24.35% | 7.26% | -8.51% | 131 |
| Tampa MSA | 5.9% | $ 10,320 | 24.18% | 9.10% | -17.50% | 101 |
| Stamford MSA | 5.8% | $ 31,324 | 27.24% | 5.71% | -6.36% | 116 |
| Jacksonville MSA | 5.6% | $ 11,280 | 30.11% | 7.72% | -9.90% | 109 |
| Chicago MSA | 5.6% | $ 13,805 | 31.41% | 6.06% | -11.49% | 110 |
| Springfield MSA | 5.6% | $ 5,293 | 22.18% | 8.00% | -0.77% | 96 |
| Cleveland MSA | 5.5% | $ 7,440 | 27.68% | 6.98% | -2.65% | 91 |
| Pittsfield MSA | 5.5% | $ 15,624 | 22.18% | 6.67% | -7.76% | 119 |
| Prescott MSA | 5.5% | $ 13,038 | 29.48% | 8.70% | -18.94% | 110 |
| Fort Myers MSA | 5.4% | $ 10,229 | 17.22% | 10.66% | -26.18% | 130 |
| Detroit MSA | 5.4% | $ 6,444 | 31.63% | 11.11% | -22.97% | 89 |
Prescott ranks 22nd in overall market decline too at about a 19% drop year over year. Prices continue to fall as job losses continue and our classic growth from retirees buying homes wanes because they are unable to sell their own homes in CA and the Midwest where our retirees mostly come from.
*Full list available at http://zillow.mediaroom.com/ or by emailing press@zillow.com.
The full August national report for 160 MSAs, in its new, interactive format, will be available on Tuesday, Oct. 13 at www.zillow.com/local-info, or by emailing press@zillow.com. Additionally, in most areas data is available at the state, MSA, county, city, ZIP and neighborhood level.
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