Philadelphia and chicago best, as us tilts towards buyers

Chicago Photo: Bert Kaufmann

If you are looking to buy a home in America, Philadelphia and Chicago are two of your best bets, according to new research. A study from Zillow compares the markets across North America to find the best places to buy and sell property.

Sellers are still ruling in the Bay Area, alongside destinations such as Seattle, Denver, Portland, Nashville and Boston.

Homes in San Jose and San Francisco are flying off the market at or above asking prices, giving sellers the upper hand. In sellers' markets, homes sell an average of 48 days faster than those for sale in buyers' markets.

While Bay Area buyers struggle against the heated competition, though, they have much stronger bargaining power in Philadelphia, Chicago, Cleveland and Miami.

Here, home shoppers can expect an average 3.9 per cent discount off the final sale price - compared to less than 1 per cent in the best sellers' markets - as homeowners try to attract house-hunters and secure a deal.

The Zillow Home Value Index was up 3.9 per cent year-over-year for the first quarter of 2015, to an average of $178,400. Home values are expected to grow 2.6 per cent over the next year.

The site notes, though, that rising prices do not necessarily mean a sellers' market: the best place to sell a home is one where properties find buyers quickly and fetch prices close to - or higher than - than listing price.

Across the whoel country, the market is gradually tilting in favour of buyers, says Zillow Chief Economist Dr. Stan Humphries, thanks to rising inventory and falling competition from overseas and domestic investors.

"Sellers in buyers' markets should remain patient and take even small steps to make their home more attractive to buyers and help it stand out," he advises. "Buyers in sellers' markets should never feel pressured to pay more than they're comfortable with and capable of."