Housing Market to Favor Homebuyers in 2020
After home prices soared due to a lack of inventory and a recovering economy, over three-quarters of experts believe the shift to a buyer’s housing market should come in two years at the earliest, according to Zillow.
While the tide takes some time to turn, industry trends already signal the coming change. Home value appreciation is de- creasing and the latest monthly data showed the percentage of listings with price cuts was up year-over-year at 14.2% nationally.
“The most prominent driving force that would shift the market dynamics would be a nationwide recession. In the previous iteration of the survey, we asked the same group of respondents when they expect the next nationwide downturn to occur, and they all pointed to early 2020. Those two things would coincide,” Aaron Terrazas, senior economist at Zillow, said in an interview.
The deficit of housing inventory has driven demand and prices. It’s declined on a yearover-year basis for 42 straight months. However, the declines are decelerating.