Where Are the Least Competitive Housing Markets?

As the home shopping season enters the summer months, buyers in some areas of the country are likely  to have an easier go of it, with less competition from other buyers, more time to shop, more homes to choose from, and a greater likelihood of concessions from sellers, including price cuts.

In other markets, however, competition remains stiff, with homes flying off the market in only five days.

A Zillow analysis of competition in the nation’s top 50 U.S. metros found that home shoppers in Sun Belt cities are likely to face less competition while buyers in some cities in the Northeast are likely to face tough competition and tighter timelines. Trends on a national level, however, are beginning to “show signs of a more balanced housing market,” said Zillow Senior Economist Orphe Divounguy. “Inventory is up 20% over last year, and about one in every four sellers are cutting prices.” 

Still, bidding wars are common in some markets, and buyers there should be prepared to move fast if they find an affordable home they love, he said.

Where buyer competition is fierce or tame

One way Zillow economists gauge competition in any given market is to look at engaged shoppers — people who have saved or shared a for-sale listing on Zillow. Nationally, the typical home gets 5.5 engaged shoppers for each for-sale listing, and takes just 17 days from when it’s listed to attract an offer.

Locally, the most competitive U.S. market has four times as many engaged shoppers for every listed home for sale than the least competitive market.

The 15 least competitive markets

Of 15 major metro areas with the fewest engaged home shoppers per listing, a dozen are in the Sun Belt.

The 15 most competitive markets

The Northeast tops the list of most competitive metros.

Buyers in competitive markets need to be especially prepared

Buying in a competitive market like Buffalo and Hartford can be emotionally taxing if you find yourself getting repeatedly outbid for homes. Luckily, real estate agents have tried and tested strategies for helping buyers craft offers that stand out and give them an edge against the competition.

Some of the strategies involve choosing different mortgage products and offering sellers incentives that could help make their transition easier. Read more about creative strategies for staying competitive in a sellers market.

Beyond that, buyers in markets where bidding wars are common should be sure to come prepared to make an offer. That means getting pre-approved for a mortgage before you shop, keeping contingencies to a minimum, knowing how much you can afford to offer over the list price if necessary, and demonstrating financial strength so the seller can be more confident that the sale won’t fall through.

Your agent should be an expert on local market conditions, and can help you craft a competitive offer regardless of the competition. You can connect directly with a partner agent on Zillow, or download the Zillow app to contact an agent to set up a home tour.