But sellers will be in control for at least the next 18 months
By 2020 the US housing market will favor buyers but until then sellers will remain dominant according to an analysis by Zillow.
Its quarterly Home Price Expectations Survey was conducted by Pulsenomics and asked more than 100 real estate economists and experts for their predictions.
The last few years has been marked by low inventory and escalating prices, putting sellers in the driving seat, but the largest consensus share (43%) of respondents believe sellers will take control in 2020.
However, most panelists believe the Midwest will move to a buyers market next year.
"For the past several years, home sellers held all the cards at the negotiating table, fielding multiple offers while buyers faced stiff competition and a fast-moving market," said Zillow Senior Economist Aaron Terrazas. "Conditions are starting to show signs of easing up, but the effects of years of limited construction still linger.”
Home prices will rise almost 6% this year
The experts also gave their views on home prices with an expectation of 5.9% rise for 2018.
"While ongoing supply constraints are reinforcing the floor on home prices right now, the experts' forecasts still imply the joists will start to crack sometime next year, and result in sub-three percent annual home-value appreciation in 2020 and beyond," said Pulsenomics® Founder Terry Loebs.
