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The current seller’s market in real estate is expected to shift to a buyer’s market within three years, according to the October Zillow® Real Estate Market Reports. The shift will be fueled by slowing appreciation; according to the Zillow Home Value Index (ZHVI), home values have risen 6.2 percent in the last year to a median $191,200, a rate that will fall by approximately half by October 2017.

“The housing market has been favoring sellers for the past few years,” says Zillow Chief Economist Svenja Gudell. “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.”

Experts surveyed in the latest Zillow Home Price Expectations Survey also expect the shift, either by 2018 or 2019.

For more information, please visit www.zillow.com.

For the latest real estate news and trends, bookmark RISMedia.com.

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