If you need assistance, please call 805-857-4181

Are We About to Enter a Buyers’ Market?

Friday, October 5, 2018   /   by Rich Hernandez

Are We About to Enter a Buyers’ Market?

Home sales are below last year’s levels, home values are appreciating at a slower pace, and there are reports showing purchasing demand softening. This has some thinking we may be entering a buyers’ market after sellers have had the upper hand for the past several years. Is this really happening?


The market has definitely softened. However, according to two chief economists in the industry, we are a long way from a market that totally favors the purchaser:


Dr. Svenja Gudell, Zillow Chief Economist:



“These seller challenges don’t indicate we’re suddenly in a buyers’ market – we don’t expect market conditions to shift decidedly in favor of buyers until 2020 or later. But buyers certainly are starting to balk at the rapid rise in prices and home values are starting to grow at a less frenetic pace.”



Danielle Hale, Chief Economist of realtor.com:



“The signs are pointing to a market that’s shifting toward buyers. But, in most places, we’re still a long way from a full reversal.”



In addition, Pulsenomics Inc. recently surveyed over one hundred economists, real estate experts, and investment & market strategists and asked this question:



“When do you expect U.S. housing market conditions to shift decidedly in favor of homebuyers?”



Only 5% said the market has already shifted. Here are the rest of the survey results:


Are We About to Enter a Buyers’ Market? | Keeping Current Matters


Bottom Line


The market is beginning to normalize but that doesn’t mean we will quickly shift to a market favoring the buyer. We believe Ivy Zelman, author of the well-respected ‘Z’ Report, best explained the current confusion:



“With the rate of home price appreciation starting to decelerate alongside the uptick in inventory…we expect significant debate about whether this is a bullish or bearish sign.


In our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.”




The Omni Group
Rich Hernandez
3635 West 5th Street
Oxnard, CA 93035
805-857-4181
DRE# 01732845

Based on information from California Regional Multiple Listing Service, Inc. as of March 29, 2020. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.