Hous­ing Mar­ket to Fa­vor Home­buy­ers in 2020

National Mortgage News - - Origination - By Paul Cen­topani

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.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.