May 19th, 2019 10:57 AM by Jackie A. Graves, President
An important shift could
be happening in the housingOpens a New Window. market, where
conditions are starting to look more favorable for buyers than sellers in some
According to a new study
from online real estate marketplace Trulia, the shift is taking place largely
in metro areas where affordabilityOpens a New Window. has
become the biggest challenge.
Half of the country’s
100 largest cities are showing signs of change, as measured by a number of
indicators, including the percentage of listings with a price cut, median
days on the market and the median sale-to-list price ratio.
Many of those cities are on the West Coast, where major metro
areas have seen meaningful increases in home prices.
Las Vegas has seen the biggest shift, according to TruliaOpens a New Window.. Last year, the market
was ranked the third worst market for buyers – this year it is ranked the fifth
San Jose, California, is the city where buyers are seeing the
second-largest transformation in conditions, which moved up 92 spots in the
rankings – slightly less than Las Vegas’ 93. Seattle also climbed 74 spots –
shifting meaningfully up in the best market for buyers list.
Prices in these markets rose between 57 percent and 104 percent
from 2013 to 2019. Home values, however, have begun appreciating more slowly
throughout the past year.
Less dramatic shifts were also recorded in Denver and Dallas.
The report does note, however, that it is only the beginning of
a trend. The market, as it currently sits, still largely favors sellers.
On a similar note, First American Deputy Chief Economist Odeta
Kushi noted that significantly lower mortgage rates – when compared with last
year – means the average consumer should be able to afford more.
“The good news for
homebuyers and the housing market is house-buying power is at its second
highest point in over two decades,” Kushi wrote in a blog postOpens a New Window..
Experts previously told FOX Business excess inventory
among luxury houses would limit upside price movement.
As of March, inventory of higher-end homes (priced $750,000 and
higher) rose 11 percent year over year, according to Realtor.com.
However, when it comes to lower-price homes, affordability is
likely to continue to remain challenging. The number of homes priced at
$200,000 and below in March was down 9 percent when compared with last year. A
lack of inventory at those prices means buyers will be competing with one
another to get the ideal home.
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