Zillow Panelists Predict A Buyers Market By End Of 2023!
A panel of 107 housing market experts and economists predicted rent growth and inflation to outpace home appreciation.
Inventory is ticking up but is still down almost 42% compared to 2019.
56% of the panel expects a significant shift in buyers' favor by sometime next year.
More than half of a panel of housing market experts and economists are predicting a buyers' market by 2023.
A Zillow Home Price Expectations Survey of 107 experts found even though skyrocketing mortgage costs are driving competition now, 56% expect a significant shift in buyers' favor by sometime next year. Another 24% predicted that shift would come in 2024, 13% pointed to 2025, and just 8% expect it after 2025.
"After the frantic rush for real estate over the past two years, buyers are finally seeing a calmer market. Those still able to afford homeownership are quickly regaining lost leverage, but this shift to a more balanced market is still in its early stages," said Nicole Bachaud, senior economist at Zillow. "Home shoppers priced out of the market are in a tight spot, though, as high and rising rents could cut further into their ability to save up for a down payment."
Inexpensive Midwest markets — such as Columbus, Indianapolis and Minneapolis — are the least likely to see home prices decline over the next 12 months, according to the panelists. Fast-growing markets in the South, like Atlanta and Nashville, are also expected to retain their heat. Sarah Wolak Sep 29, 2022