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12 best winter housing markets for homebuyer bargaining power

House hunters are starting to gain more leverage at the negotiating table.

Many markets are showing signs of more favorable conditions after several years in which homebuyers battled rising home prices and bidding wars.

Advisors with clients venturing out into the housing market may want to let prospective buyers know that they may find they have greater negotiating power.

Cities where price cuts are becoming more frequent, rent appreciation is accelerating and affordability has improved are giving purchasers more room for negotiation and lenders a better shot at seeing more business from borrowers, according to Zilllow.

While winter is the slowest time of the year for home sales and mortgage activity, lenders are projected to generate 20% of their annual origination volume during the first quarter of 2019, including $226 billion in purchase loans, according to Mortgage Bankers Association data.

In areas where the share of listings with price cuts grows, buyers may see less local competition as properties sit on the market longer. Within cities projected to experience more rapidly rising rent prices, consumers may opt for a home purchase. Potential homeowners may also feel less financial pressure in regions where affordability is better than historic norms.

From Chicago to Orlando, Florida, here's a look at 12 housing markets where homebuyers can expect to have more negotiating power this winter.

The rankings are derived from a Zillow analysis of three metrics for each market: the share of listings with price cuts compared to a year ago; rent appreciation forecasts; and mortgage affordability.

Price cut, rent forecast and home price data are based on September 2018. The second quarter 2018 affordability data is calculated by the portion of median household income going toward a mortgage payment for the median home price, assuming a 20% down payment and 30-year fixed-rate mortgage, according to Zillow.

NMN101818-chicago.jpg
Chicago
Change in listings with a price cut: 3.2%
Projected year-over-year rent change: 1.2%
Mortgage affordability: 15.6%
Median home price: $222,200
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Kansas City, Missouri
Change in listings with a price cut: 2.5%
Projected year-over-year rent change: 3.2%
Mortgage affordability: 13.8%
Median home price: $185,500
Dallas
Dallas
Change in listings with a price cut: 2.5%
Projected year-over-year rent change: 1.4%
Mortgage affordability: 16.7%
Median home price: $233,200
NMN051018-minneapolis.jpg
Minneapolis
Change in listings with a price cut: 1.9%
Projected year-over-year rent change: 1.5%
Mortgage affordability: 16.7%
Median home price: $263,300
Sacramento, Calif.
Sacramento, California
Change in listings with a price cut: 5.3%
Projected year-over-year rent change: -0.1%
Mortgage affordability: 28.8%
Median home price: $400,600
Portland, Ore.
Portland, Oregon
Change in listings with a price cut: 4.6%
Projected year-over-year rent change: 3.7%
Mortgage affordability: 26.1%
Median home price: $391,400
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Columbus, Ohio
Change in listings with a price cut: 4%
Projected year-over-year rent change: 1.9%
Mortgage affordability: 14.1%
Median home price: $184,200
Charlotte
Charlotte, North Carolina
Change in listings with a price cut: 4.2%
Projected year-over-year rent change: 2.9%
Mortgage affordability: 15.1%
Median home price: $199,400
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Las Vegas
Change in listings with a price cut: 9.8%
Projected year-over-year rent change: -0.1%
Mortgage affordability: 22.5%
Median home price: $273,800
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Seattle
Change in listings with a price cut: 11.6%
Projected year-over-year rent change: 3.3%
Mortgage affordability: 28.6%
Median home price: $486,600
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Boston
Change in listings with a price cut: 3.9%
Projected year-over-year rent change: 3.1%
Mortgage affordability: 25.8%
Median home price: $458,000
8-orlando.jpg
Orlando, Florida
Change in listings with a price cut: 6.80%
Projected year-over-year rent change: 1.40%
Mortgage affordability: 20.2%
Median home price: $231,000