Are We About to Enter a Buyers’ Market? – Dallas Market Cools this Fall

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Dallas Home Market Cools this Fall…

And technically, it is still a seller’s market, yet home sales are leveling along with home sales prices, and more days on market, price reductions and frustrated sellers show the signs.

Of course, there is an upside.  Opportunity can always be found in a market shift. Market shifts such as the fall 2018 Dallas home market create opportunity. Specifically, buyers are making better deals and sellers who plan to buy feel less pressure.  Both stabilize housing markets.

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 US housing market conditions to shift decidedly in favor of homeowners?

 

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

Dallas Home Market Shift to Buyer's Market

 

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.”

All this said, there are better times than others to place an offer on a property. Buyers are now making smart deals and often discovering instant equity. A full-fledged buyers market is not needed to find a good value, and inventory rising means more selection for buyers and competition among sellers.  While interest rates are low, if you’ve been planning to buy and waiting out the crazy Dallas home market, it’s time to make your move.

 

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