Is the Market Changing?

According to industry resource KCM, home values are starting to appreciate nationally at a slower pace. There are also reports indicating that purchasing demand is softening. This has some thinking that we may be entering a buyers’ market after sellers have had the upper hand for the last few years.

Is this really happening?

According to two chief industry economists, 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 to ask this question: “When do you expect U.S. housing market conditions to shift decidedly in favor of home buyers?”

Only 5% said the market has already shifted. But, 43% said it will shift by 2020.

This is in keeping with other predictions we’ve read or heard about.  Most experts see a gradual “normalization” of the market over the next few years. The prediction is that increases in home valuations will level off to about 3% – 5% per year.

For us, the wild card is interest rates and the impact that recent and expected increases will have on the amount that buyers can afford to borrow.

In addition, reputable reports indicate that recent tariffs have added as much as $9,000.00 to the cost of new construction. This can potentially impact both builders and buyers, if final costs increase significantly.

What does it all mean?

If you’re thinking of buying or selling, there’s no better time than now. This past weekend we hosted a very active Open House at a home with an asking price of over $600,000.  We also heard reports of strong turnouts at other Open Houses. So, buyer interest is there.  At Today Real Estate, there’s also been an up tick in listings.

If you’d like to talk about your options and what’s happening on the Cape or across the country, call us at 508-568-8191 or contact us via the comment section.

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We’re excited that one of our listings is featured on the cover of the current issue of Homes and Land of Cape Cod magazine.

The photo of 66 The Heights in the gated Willowbend community in Mashpee shows the stunning  back of the home, which faces the 14th fairway of Willowbend Country Club. A spacious deck and balconies for two of the three upstairs bedrooms can also be seen. (The third upstairs bedroom also has a balcony. Each has their own full bath.)

Professionally landscaped, this property is sitting on a double lot that neighbors say is “the best” in the development.

If interested, please contact us for more information.

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We lost a valued Today Real Estate colleague last week with the passing of George Wright at age 79. A true gentleman, George was getting ready to come to work at our Centerville office when he was stricken.  “Cuz” will truly be missed.

Mari and Hank

 

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