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    Are We About to Enter a Buyers’ Market?

    Home sales are below last year’s levels, home values are appreciating at a slower pace, and there are reports showing purchasing demand softening. This has some thinking we may be entering a buyers’ market after sellers have had the upper hand for the past several years. Is this really happening?

    The market has definitely softened. However, according to two chief economists in the industry, we are a long way from a market that totally favors the purchaser:

    Dr. Svenja Gudell, Zillow Chief Economist:

    “These seller challenges don’t indicate we’re suddenly in a buyers’ market – we don’t expect market conditions to shift decidedly in favor of buyers until 2020 or later. But buyers certainly are starting to balk at the rapid rise in prices and home values are starting to grow at a less frenetic pace.”

    Danielle Hale, Chief Economist of realtor.com:

    “The signs are pointing to a market that’s shifting toward buyers. But, in most places, we’re still a long way from a full reversal.”

    In addition, Pulsenomics Inc. recently surveyed over one hundred economists, real estate experts, and investment & market strategists and asked this question:

    “When do you expect U.S. housing market conditions to shift decidedly in favor of homebuyers?”

    Only 5% said the market has already shifted. Here are the rest of the survey results:

    Are We About to Enter a Buyers’ Market? | MyKCM

    Bottom Line

    The market is beginning to normalize but that doesn’t mean we will quickly shift to a market favoring the buyer. We believe Ivy Zelman, author of the well-respected ‘Z’ Report, best explained the current confusion:

    “With the rate of home price appreciation starting to decelerate alongside the uptick in inventory…we expect significant debate about whether this is a bullish or bearish sign.

    In our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.”

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    Danny Cheung

    I spent over twenty five (25) years with the Department of Defense in the hardware/software design and development as well as program management prior to joining the Group in a full time capacity. I am thrilled to put my years of experience as an Electronics Engineer to assist and lead our Real Estate Group to the next level. I am committed to establishing the tools and resources necessary for our team members to work more seamlessly and effectively thus ensuring our clients full satisfaction. My wife and I have two daughters and a dog (he's more like our son). I enjoy travelling and watching sports especially football…Go Skins!

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