It’s an amazing time for sellers, but the momentum is expected to shift to buyers by 2018 or 2019, according to a Zillow survey of housing experts.
In October, the median U.S. home value of $191,200 was up 6.2 percent compared to a year earlier, thanks partly to a 6 percent drop in housing inventory. (Buyers in Boston, Indianapolis and Kansas City saw the biggest drop in homes for sale.)
Rents, meanwhile, were up 1.4 percent on an annual basis.
“The housing market has been favoring sellers for the past few years,” said Dr. Svenja Gudell, Zillow’s chief economist. “Sellers in the current housing landscape often have the luxury of listing their home ‘as-is’ without fixing it up or with only minimal window-dressing since demand for homes has been high and inventory low.
“It’s common for sellers to receive multiple bids, and in the hottest markets, sell for over asking price, but these conditions will change in the future. As the number of homes for sale increases and home value appreciation slows, we expect the market to meaningfully swing in favor of buyers within the next two to three years.”
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