Survey Finds Buyers Still Paying Less Than Listing Price

While it appears the balance between a buyers market and a sellers market is creeping back towards equilibrium, there is a likelihood of a trend back towards the buyers as the summer home purchase season ends, the chief economist of Zillow.com said. The August Zillow Real Estate Market Reports found purchasers paid 3% less than the last listing price on homes sold in the month. However, this is down from 3.3% in July and 4.5% at the start of the year. In dollar terms, the median difference between the last listing price and the sales price is $6,535 for August, compared with $7,018 in July and $10,096 in January. "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 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." Florida markets are having the biggest negative gap between listing price and what the consumer is actually paying. However, in two California markets, El Centro and Stockton, buyers are paying more than the last list price.