To determine which markets favor buyers and sellers, Zillow looked at the length of time a home stays on the market and the percentage of listings with a price cut. In buyers' markets, homes are on the market longer and price cuts occur more frequently. Homes in a sellers' market sell quickly and have fewer homes with a price cut.

“The overall recovery has been more robust in many coastal markets, especially on the west coast, with fast home value appreciation, strong job growth and solid income gains,” says Zillow Chief Economist Dr. Svenja Gudell. “Many of these markets are also experiencing above-average housing demand coupled with limited inventory, putting sellers in the driver's seat. On the flip side, a number of markets nationwide continue to struggle with slower job growth, weaker home value appreciation and higher rates of negative equity, giving buyers more negotiating power. Whether you live in a buyers' or sellers' market, there are a few things you can do to stand out from the crowd. If you're a buyer in a sellers' market, it's important to get preapproved for a loan so you can move as quickly as possible. It's also helpful to find an agent with a track record of winning bidding wars. If you're a seller in a buyers' market, consider making small improvements to your home to make it more attractive, and be prepared to be a bit more patient waiting for offers to come in. Every housing market is different, so it's important for buyers and sellers to educate themselves on the type of market they're in.”

SEATTLE—San Francisco and San Jose, CA top locally based Zillow's list of the best markets for sellers. Buyers in Baltimore and Miami will have the most negotiating power when shopping for a home, according to the latest Zillow analysis.

West Coast markets like Seattle, Denver and Portland have been driving the housing market over the past year, Zillow says. “Strong job growth is attracting newcomers, causing demand for homes to skyrocket.” Portland and Seattle have experienced extremely high home value growth over the past year, with Portland leading the nation for the past 12 months, the analysis says. In 2016, Portland home values grew 14% and Seattle home values grew 12%.

Denver, Seattle and Sacramento join the two Bay Area metros on the list of markets that favor sellers, Zillow says. Homes in these five metros stay on the market for an average of just 54 days and rarely feature slashed prices; bidding wars are common in these hot housing markets.

Buyers will face less competition and have more bargaining power in Baltimore, Miami, Philadelphia, Chicago and Houston, which are Zillow's top five markets for buyers—homes in these metros stay on the market for an average of 103 days. Six out of the 10 top buyers' markets have home values appreciating more slowly than the home values in the nation as a whole. In Philadelphia, home values grew less than 5% in 2016, and less than 4% in Baltimore.

To determine which markets favor buyers and sellers, Zillow looked at the length of time a home stays on the market and the percentage of listings with a price cut. In buyers' markets, homes are on the market longer and price cuts occur more frequently. Homes in a sellers' market sell quickly and have fewer homes with a price cut.

“The overall recovery has been more robust in many coastal markets, especially on the west coast, with fast home value appreciation, strong job growth and solid income gains,” says Zillow Chief Economist Dr. Svenja Gudell. “Many of these markets are also experiencing above-average housing demand coupled with limited inventory, putting sellers in the driver's seat. On the flip side, a number of markets nationwide continue to struggle with slower job growth, weaker home value appreciation and higher rates of negative equity, giving buyers more negotiating power. Whether you live in a buyers' or sellers' market, there are a few things you can do to stand out from the crowd. If you're a buyer in a sellers' market, it's important to get preapproved for a loan so you can move as quickly as possible. It's also helpful to find an agent with a track record of winning bidding wars. If you're a seller in a buyers' market, consider making small improvements to your home to make it more attractive, and be prepared to be a bit more patient waiting for offers to come in. Every housing market is different, so it's important for buyers and sellers to educate themselves on the type of market they're in.”