SAN DIEGO (KGTV) -- The market may soon be looking up for San Diegans hoping to buy a home. A new report by Zillow found that many economists believe the housing market in the West will turn into a buyer’s market by 2020.
According to the housing site, home-values have appreciated faster in 2018 than in 2017. That coupled with a fall in inventory means that sellers are in the driver’s seat.
At least for now. Zillow says recent data suggest the balance may be starting to tilt back toward buyers. Home growth is slowing in more than half the nation’s 35 largest metros and price cuts are common.
Even in San Diego, where the cost of living is well above average, 20 percent of listings saw a price cut in June.
A separate report from Zillow found that the increase in home values has also slowed throughout San Diego.
Three out of four economists surveyed say the national housing marked could see a shift to a buyer’s market by 2020.
Those same economists say the Midwest will be the first to see the shift, beginning as early as 2019, followed by the Northeast, South and West in 2020.
“For the past several years, home sellers held all the cards at the negotiating table, fielding multiple offers while buyers faced stiff competition and a fast-moving market,” said Zillow Senior Economist Aaron Terrazas.
Over the next year, Zillow expects the rate of appreciation to slow to 4.7 percent in San Diego, where the median home price is $584,100.
“Conditions are starting to show signs of easing up, but the effects of years of limited construction still linger. Inventory is still falling on an annual basis, and home values are growing well above their historic pace. Although these trends are starting to lose their edge, it is far too soon to call it a buyers market,” Terrazas said.
