Are We About To Enter A Buyers Market

Dated: 10/04/2018

Views: 241

Are We About to Enter a Buyers’ Market? | Keeping Current MattersHome 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:

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

Raul Acuna - CA BRE #01708572

Raul Acuña - Raul has been in the Real Estate Industry since 2005. Raul began working at an REO brokerage before opening his own REO company in 2010. Raul has a business degree from Cal Poly Pomona, ....

Want to Advertise on this Site?

Latest Blog Posts

Selling Or Buying A Home During Covid19

Many people are in a position where they need housing. If you find yourself needing to sell a home or buy a home in today’s Coronavirus environment, here are some guidelines and best practices.

Read More

Home Warranties What You Should Know

Sellers are starting to offer a one-year home warranty to cover repair costs for items such as Roof, HVAC, plumbing, appliances, pools, etc. The tactic, which is gaining popularity, is meant to

Read More

Covina Home Coming Soon

4008 N Orange Ave, Covina$450,0002 Bedrooms1 bathroom809 sq ft5,165 sq ft Lot1950 Yeart BuiltFor more info contact:Raul AcuñaAcuña & Co. Real Estate626-374-8479raul@acunaandco.comCA BRE

Read More

New Condo Rules Will Open More Doors For Buyers

NAR: New Condo Rules Will Open More Doors for BuyersThe association says changes to FHA financing qualifications will bring more entry-level homes to the market, helping to meet buyer demand.The

Read More