Some Signs of Normalcy Return for Homebuyers
David Deem
714-997-3486
If your home-buying aspirations have been hampered due to the fiercely competitive market conditions of the past several months, things may be looking brighter.
According to a recent market report from Zillow, from late summer through early fall, homebuyers have benefited from slightly more selection, some price cutting and a little more time to consider a home before jumping in with an offer.
As Zillow Senior Economist Jeff Tucker reports, the housing market returned to “some semblance of normalcy in September,” which was fueled by the typical seasonal slowdown often seen in the fall. "Homes are still selling quickly, and prices have not receded, but it's not quite as extreme a sellers' market as we saw back in the spring and summer,” he says. “Buyers today will benefit from a little more time to pick the right home and a few more listings to choose from."
The Zillow Home Value Index (ZHVI) for the U.S. shows that, after peaking in July, monthly home value appreciation slowed from August in 44 of the 50 largest U.S. metros. But it’s all relative—the typical U.S. home was worth 18.4% more in September 2021 than it was in September 2020. Annual appreciation in large markets was in the double digits across all 50 major markets, ranging as high as 44.9% in Austin and 32.2% in Phoenix.
While the shortage of available homes for sale also remains acute in much of the country— down 19.9% from this time a year ago and 37.7% below 2019 levels—a slow, incremental growth in inventory is providing some hope on the horizon for buyers. August marked the first month in which the year-over-year inventory deficit was smaller than 20% since July 2020.
This small sign of relief for buyers is showing itself in the gradual slowing of market velocity. Homes are taking one day longer to sell than in August, with listings going into the pending stage in a median of just nine days, giving buyers a bit more time to find the homes they're looking for and make an offer on them before they're snatched up.
As homes are staying on the market longer, a higher percentage are also seeing price cuts. The share of homes listed on Zillow that saw a price cut before going under contract rose to 14.7% in September, up from just 7.9% in April.
What’s in store for the remainder of the year? Zillow economists expect 13.6% home-value growth through September 2022, which represents a stronger 12-month forecast than last month, supported by a slower inventory recovery and heightened sales and mortgage application activity. Existing-home sales are expected to reach 6.04 million in 2021, up 7% from an already strong 2020 and higher than prior forecasts.
Keep in mind that while national trends are important, local conditions vary greatly. So if you’re in the market for a home, be sure to talk with an expert real estate agent in the areas you’re considering.
As Zillow Senior Economist Jeff Tucker reports, the housing market returned to “some semblance of normalcy in September,” which was fueled by the typical seasonal slowdown often seen in the fall. "Homes are still selling quickly, and prices have not receded, but it's not quite as extreme a sellers' market as we saw back in the spring and summer,” he says. “Buyers today will benefit from a little more time to pick the right home and a few more listings to choose from."
The Zillow Home Value Index (ZHVI) for the U.S. shows that, after peaking in July, monthly home value appreciation slowed from August in 44 of the 50 largest U.S. metros. But it’s all relative—the typical U.S. home was worth 18.4% more in September 2021 than it was in September 2020. Annual appreciation in large markets was in the double digits across all 50 major markets, ranging as high as 44.9% in Austin and 32.2% in Phoenix.
While the shortage of available homes for sale also remains acute in much of the country— down 19.9% from this time a year ago and 37.7% below 2019 levels—a slow, incremental growth in inventory is providing some hope on the horizon for buyers. August marked the first month in which the year-over-year inventory deficit was smaller than 20% since July 2020.
This small sign of relief for buyers is showing itself in the gradual slowing of market velocity. Homes are taking one day longer to sell than in August, with listings going into the pending stage in a median of just nine days, giving buyers a bit more time to find the homes they're looking for and make an offer on them before they're snatched up.
As homes are staying on the market longer, a higher percentage are also seeing price cuts. The share of homes listed on Zillow that saw a price cut before going under contract rose to 14.7% in September, up from just 7.9% in April.
What’s in store for the remainder of the year? Zillow economists expect 13.6% home-value growth through September 2022, which represents a stronger 12-month forecast than last month, supported by a slower inventory recovery and heightened sales and mortgage application activity. Existing-home sales are expected to reach 6.04 million in 2021, up 7% from an already strong 2020 and higher than prior forecasts.
Keep in mind that while national trends are important, local conditions vary greatly. So if you’re in the market for a home, be sure to talk with an expert real estate agent in the areas you’re considering.
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