SOURCE: ZipRealty

ZipRealty

April 21, 2010 08:01 ET

High-End Housing Markets Home to Biggest Bargains in 2010, According to ZipRealty "Home Hunter Report"

First-Time and Move-Up Buyer Tax Credits Spurred Homebuyers Across Price Points Into Action in the First 90 Days of 2010

EMERYVILLE, CA--(Marketwire - April 21, 2010) -  High-end housing markets were home to the biggest bargains for buyers in the first quarter of this year, according to a Home Hunter Report released today by ZipRealty (NASDAQ: ZIPR), the nation's leading online-based real estate brokerage (www.ziprealty.com).

In one of the country's most famous ZIP codes, 90210 in Beverly Hills, homes sold, on average, for 15 percent below asking price, or an average of $703,964 under asking. Across the country, in Miami's Palm Beach (33480), buyers paid about a million dollars per purchase and paid an average of $198,693 under asking.

These are just two highlights revealed by ZipRealty's report, which compares home sale prices to original list prices based on MLS data within 5,400 cities across 33 markets the brokerage serves. To view the entire report online, visit http://www.ziprealty.com/whitepaper/homehunterreport/firstquarter2010.pdf.

Other highlights from the ZipRealty Q1 2010 Home Hunter Report include:

  • ZIP codes in California remain the country's "hottest" for buyer demand. California is home to nine out of ten of the country's hottest ZIP codes, with homes selling above asking price in parts of the state. See the chart below for the full list of the country's ten hottest and ten coldest ZIP codes.
  • According to the total number of home searches on www.ZipRealty.com, Phoenix continues to be the most popular searched city in the country.
  • Many of the country's "coldest" markets -- those ZIP codes where homes are selling below list price -- continue to be located in South Florida. The report has shown, however, those same "cold" markets are seeing a warming trend, selling on average more than five percent closer to asking price in Q1 2010 than they were in the same time period last year. In Q1 2009, homes in the county's ten "coldest" markets sold for an average of 77 cents to the dollar while homes in Q1 of this year in those same markets sold for an average of 82 cents to the dollar.

"Based on activity during the first 90 days of 2010, we're seeing some indicators of a housing market recovery nationally, as buyers have been motivated by the first-time buyer tax credit, low interest rates and low prices," said Leslie Tyler, vice president and chief home hunter for ZipRealty. "While the first-time and move-up buyer tax credits expire at the end of this month, new short sale regulations may mean more home listings will be available for buyers who are still hoping to take advantage of lower prices."

Hottest/Coldest ZIP Codes by Sale-to-List Price Trends
The country's ten hottest ZIP codes -- those with the highest sales-to-list-price ratios -- include the following:

Neighborhood/City   ZIP Code   Percent Above List Price   Average List Price   Average Sale Price
Chicago - Loop   60603   10.23%    $760,287    $838,101
Emeryville/Oakland   94608   7.72    $286,434    $308,543
Oakland   94621   7.41    $110,440    $118,627
Los Angeles   90063   6.77    $185,958    $198,542
San Jose - East Valley   95122   6.67    $268,257    $286,147
San Pablo, Calif.   94806   4.97    $163,708    $171,840
Los Angeles - Compton   90222   4.40    $141,273    $147,486
Lathrop, Calif.   95330   4.36    $183,618    $191,631
Oakland   94606   4.34    $276,632    $288,633
Oakland   94603   4.33    $115,870    $120,889

The country's coldest ZIP codes -- those with the lowest sales-to-list-price ratios -- include the following:

Neighborhood/City   ZIP Code   Percent Below List Price   Average List Price   Average Sale Price
Fort Lauderdale, Fla.   33301   20.83%   $764,546   $605,327
New Fairfield, Conn.   06812   19.92   $744,103   $595,867
Decatur, Texas   76234   19.24   $259,893   $209,891
Naples, Fla.   34102   17.26   $2,188,913   $1,811,039
Lake Norman - Troutman, NC   28166   17.03   $118,903   $98,648
Lynnwood, Wash.   98087   16.98   $390,705   $324,382
Miami Beach, Fla.   33141   16.70   $604,058   $503,185
West Palm Beach, Fla.   33405   16.07   $329,854   $276,852
Palm Beach, Fla.   33480   16.01   $1,241,159   $1,042,466
Highland Beach, Fla.   33487   15.96   $674,222   $566,649

A sampling of the highest and lowest sales-to-list price ratios in several ZipRealty markets include the following:

Market   Hottest   Coldest
Greater Boston   Lynn (01905)
100.24%
  Marblehead (01945)
(89.08%)
San Francisco Bay Area   Emeryville/Oakland (94608)
107.72%
  Sonoma (95476)
92.18%
Chicago   Downtown - Loop (60603)
110.23%
  Burr Ridge/Willowbrook (60527)
86.84%
Las Vegas   Downtown Las Vegas (89106)
103.80%
  Red Rock Country Club (89135)
89.66%
Miami   Hialeah (33015)
100.87%
  Fort Lauderdale (33301)
79.17%
New York Metro   Shirley - Long Island (11967)
99.85%
  Great Neck (11021)
88.45%
Phoenix   Queen Creek (85240)
100.89%
  Scottsdale (85262)
86.72%
Seattle   Fife/Tacoma (98424)
99.92%
  Lynwood (98087)
83.02%
Southern California   Los Angeles (90063)
106.77%
  Beverly Hills (90210)
84.54%

Hot and cold ZIP codes for all 33 markets that ZipRealty tracks in this report are available here: http://www.ziprealty.com/whitepaper/homehunterreport/firstquarter2010.pdf.

Phoenix is Still Nation's Most Popular City for Home Hunters
According to the total number of home searches on www.ZipRealty.com throughout Q1, the Phoenix area remains the most popular city searched. Phoenix proper and its suburbs Scottsdale, Mesa, Chandler, Gilbert and Glendale claimed more than half of the country's top spots for most popular cities by home searches on ZipRealty.com. The metro was joined by three Las Vegas areas -- two communities in Henderson (Anthem/Seven Hills and Green Valley) and the suburb Summerlin -- and Orlando, Fla., to round out the country's most popular areas for online home hunters.

For more information about the most highly searched cities for home hunters in Q1 2010, please see the full report: http://www.ziprealty.com/whitepaper/homehunterreport/firstquarter2010.pdf.

About the Report http://www.ziprealty.com/whitepaper/homehunterreport/firstquarter2010.pdf
Each quarter, ZipRealty compiles real estate listing and sales data from the Multiple Listing Services offered in 33 of the 35 major U.S. metropolitan areas in which the real estate brokerage operates. The data pulled and cited within this report is for the first quarter of 2010, beginning January 1 through March 31, 2010.

This report is intended to convey information on the general market conditions where ZipRealty operates, not on ZipRealty's operating results. ZipRealty's operating results may be materially different from the general trends shown in this report. Please do not draw any conclusions about ZipRealty's operating results based on the information contained in this report but instead refer to ZipRealty's earnings releases and periodic reports as they are made public. 

About ZipRealty, Inc.
ZipRealty is a full-service residential real estate brokerage firm. The Company utilizes its user-friendly website and employee real estate agents to provide home buyers and sellers with high-quality service and value. ZipRealty's website provides users with access to comprehensive local Multiple Listing Services' home listings data, as well as other relevant market and neighborhood information. The Company's proprietary business management system and technology platform help to reduce costs, allowing the Company to pass on significant savings to consumers. Founded in 1999, the company operates in 35 major markets in 22 states and the District of Columbia. For more information on ZipRealty, visit www.ziprealty.com or call 1-800-CALL-ZIP.

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