Nationally, home sales are below last year’s levels, home values are appreciating at a slower pace, and locally we are seeing purchasing demand softening. This has some thinking we may be entering a buyers’ market after sellers have had the upper hand for the past several years. Is this really happening?
The market has definitely softened. We've seen Price Changes occurring our local market since the Late Spring/Early Summer market. However, according to two chief economists in the industry, we are a long way from a market that totally favors the purchaser:
Dr. Svenja Gudell, Zillow Chief Economist:
“These seller challenges don’t indicate we’re suddenly in a buyers’ market – we don’t expect market conditions to shift decidedly in favor of buyers until 2020 or later. But buyers certainly are starting to balk at the rapid rise in prices and home values are starting to grow at a less frenetic pace.”
Danielle Hale, Chief Economist of realtor.com:
“The signs are pointing to a market that’s shifting toward buyers. But, in most places, we’re still a long way from a full reversal.”
In addition, Pulsenomics Inc. recently surveyed over one hundred economists, real estate experts, and investment & market strategists and asked this question:
“When do you expect U.S. housing market conditions to shift decidedly in favor of homebuyers?”
Only 5% said the market has already shifted. Here are the rest of the survey results:
The market is making it's way to normalization but that doesn't mean we will quickly shift to a market favoring the buyer. Inventory has still not caught up but demand is weakening slightly.
Ivy Zelman, author of the well-repsected "'Z 'Report, best explained the current confusion:
“With the rate of home price appreciation starting to decelerate alongside the uptick in inventory…we expect significant debate about whether this is a bullish or bearish sign.
In our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.”