(KRON) — The tide is turning in the housing industry from a seller’s market to a buyer’s market. This is as home value growth is slowing from record highs.
In a recent survey of more than 100 housing market economists, Zillow asked which year might decisively turn into a buyer’s market. Senior Zillow economist Jeff Tucker said in a statement, “By far the most common answer was next year, 2023, but a number of folks actually said this year. Like, maybe it’s already happened.”
Fifty-six percent of the economists surveyed said sometime next year. Twenty-four percent said 2024. Thirteen percent predicted the shift in 2025, and 8% are tracking a buyer’s market after 2025.
Tucker says those surveyed also anticipate a decline in home prices in coastal markets like the Bay Area. He says, “That matches up with what we’re already seeing in the market. We’ve already seen our price index for both the San Francisco and San Jose metro areas decline about three to three-and-a-half percent just since this summer.”
David Stark with the Bay East Association of Realtors tells KRON4, “The real estate markets are certainly shifting. They’ve already shifted and I anticipate are going to continue to shift as long mortgage and interest rates remain high.”
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Stark says while high mortgage and interest rates have sidelined many potential homebuyers, he does not see those variables dropping dramatically anytime soon.
“Whether it’s gonna become a truly buyer’s market, that’s to be seen because as those interest rates change, it not only changes sales prices that sellers are asking, but it also changes how buyers are behaving. Prices may be coming down, but if those prices are still high for homebuyers based on the kinds of mortgages they can qualify for, it isn’t exactly a buyer’s market yet. I see it becoming more of a balanced market between buyers and sellers,” he said.