Are We About to Enter a Buyers’ Market?

Dated: 10/04/2018

Views: 107

Home sales are below last year’s levels, home values are appreciating at a slower pace, and there are reports showing 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. 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:
Are We About to Enter a Buyers’ Market? | MyKCM

Bottom Line

The market is beginning to normalize but that doesn’t mean we will quickly shift to a market favoring the buyer. We believe Ivy Zelman, author of the well-respected ‘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.”
Blog author image

Curtis Johnson

Curtis is a Best Selling Author, the Founder and CEO of The Curtis Johnson Team Powered By eXp Realty, where he runs a dynamic Real Estate Team having sold 5,000 residential homes. The Wall Street Jou....

Latest Blog Posts

More Insight on Our Economic Recovery

More Insight on Our Economic RecoveryAs we continue to work through the health crisis that plagues this country, more and more conversations are turning to economic recovery. While we look for signs

Read More

Our Nation's Homeownership Rate Rises to Highest Point in 8 Years

Our Nation's Homeownership Rate Rises to Highest Point in 8 YearsFor nearly two months, most of us have been following strict stay-at-home orders from our state and local governments. It is a whole

Read More

The Housing Market Is a Powerful Economic Driver. Here's Why:

The Housing Market Is a Powerful Economic Driver. Here's Why:With businesses starting to slowly open back up again in some parts of the country, it’s important to understand how housing can

Read More

Is it Smart to Buy a Home Now? Simply Put: Yes.

Is it Smart to Buy a Home Now? Simply Put: Yes.Through all the volatility in the economy right now, some have put their search for a home on hold, yet others have not. According to ShowingTime,

Read More