For a long time, the housing market has favored sellers over buyers. Low competition and increased demand have pushed prices higher and higher all over the country. Whether you are looking for houses for sale in Fresno, CA, Phoenix, Arizona or even in Miami, it might be possible for you to find a better deal starting in early 2019.
Surveys by Zillow estimate that almost all of the US will see a market shift by 2020, while most of Midwest and some parts of the south will start seeing this shift early in 2019.
This shift might be because of several reasons, some of which we will discuss here.
Shift in Biddings
One reason why real estate prices keep rising is that sellers usually get multiple bids on the same house. Buyers end up reaching prices far higher than their original asking price in an attempt to outbid their competition.
This is about to change, according to Svenja Gudell, Chief Economist for Zillow.
The number of houses for sale is increasing in the market, thus giving buyers alternatives and slowing down house value appreciation.
Increase in New Construction Projects
There is an excess of skyscrapers and new luxury apartments flowing throughout America. Even then, they are constructing more and more projects every day. Experts predict that in 2019, most of these projects will come to an end and that these apartments would have a higher supply than their demand.
This higher supply will give buyers all-time low costs when looking for new houses.
Steady Employment Rates
The economy has recovered extremely well from the crash it suffered in 2008. Employment rates are at an all-time high, giving more people the chance to buy new homes for themselves. Although this seems like perfect time to inflate house prices, the increase in the number of houses nearing completion means that the gap between supply and demand will not be big enough to create a bubble.
This gap would be just enough to cause the prices to drop and for favors to shift towards buyers.
Whether you are looking for a rental or an apartment, it is best that you wait a while, till 2019, to get much better deals and save some cash.