As the market slows following a gangbuster two years, some have argued the buyers market has arrived. But according to a majority of economists and housing experts polled in the latest Zillow Home Price Expectations Survey, we should expect to officially be in a buyer’s market next year.
Home value growth is slowing and prices are adjusting, but sky-high interest rates are causing many a buyer to rethink entering the market at the moment. Inventory is up as well, but is still down almost 42 percent compared to 2019.
Some 56 percent of Zillow’s expert panel expects a significant shift in buyers’ favor by sometime next year. Another 24 percent predicted that shift would come in 2024, while 13 percent pointed to 2025. Just 8 percent expect it after 2025.
All 107 survey respondents project home price deceleration in 2023. The share of panelists who believe their long-term outlook might be too optimistic jumped up to 67 percent from 56 percent last quarter.