Low inventory and high demand have fostered a seller’s market in 2016. Eventually, that will change.
According to the Zillow Home Price Expectations Survey, experts believe that, as builders increase production and sellers capitalize on home gains, the market will shift in the near future. Among respondents, 43 percent said that the market will shift in favor of buyers in 2018, while 17 percent said 2017, and 12 percent said 2019. Only six percent of experts said that the market will shift in 2022 or later.
This will also help to cool off rapid home value appreciation, making it easier for would-be buyers to save for a down payment and not feel so much like they’re trying to hit a moving target. As this happens, the market’s balance should meaningfully swing in favor of buyers.
Zillow also found that:
- Home values increased 6.2 percent over the past year to a Zillow Home Value Index of $191,200.
- There are 5.7 percent fewer homes for sale than a year ago.
- Portland, Dallas, and Seattle have had the highest year-over-year home value appreciation among the 35 largest metros.