Zillow says conditions are shifting in some surprising markets
Further evidence that things are beginning to change in the US housing market comes from a new report from Zillow.
It found that with competition easing in some hot markets, buyers are regaining power.
These markets include Seattle and Las Vegas, where buyers that were previously frozen out are finding the winter market may actually deliver a thaw.
"The housing market always lets up a little in the fall, when kids are back in school and the home shopping season wraps up for the holidays," said Zillow Senior Economist Aaron Terrazas. "But this fall and winter are shaping up to be more favorable for those buyers who have struggled to get into the housing market for several years amid red-hot competition.”
He added that although mortgage rates are rising, they will climb much further in 2019 and early 2020 and as purchase affordability deteriorates, rents are expected to pick back up as some would-be buyers put their plans on ice.
“Renters who were thinking of buying and decided to hold off may want to take another look this winter, as a steady clip of mortgage rate increases chips away at affordability and more homes become available on the market," added Terrazas.
The best markets for buyers
Based on three key metrics - an increase in the share of listings with a price cut, projected increase in rent appreciation over the next year, and affordability relative to the past – Zillow has ranked the following markets as the best for buyers:
- Orlando
- Boston
- Seattle
- Las Vegas
- Charlotte
- Columbus
- Portland
- Sacramento
- Minneapolis
- Dallas
