It seems the nation’s white-hot seller’s market may be starting to cool off—at least if a recent analysis by ValueInsured is accurate.
According to a recent blog post by ValueInsured’s experts, San Francisco, New York City, Miami, and other major cities are showing signs of slowing down.
“San Francisco—the poster child for a scorching housing market—is one of the first top markets showing signs of buyers’ fatigue, with home prices dropping last quarter for the first time since 2011,” ValueInsured posted. “New York City and Miami are also reporting signs of cooling.”
Still, despite these so-called signs, most homeowners haven’t taken notice—at least not yet. According to ValueInsured’s recent Modern Homebuyer Survey, most U.S. homeowners—about 74 percent—believe the market is right for selling. Millennials are even more adamant that it’s a seller’s market, with nearly 80 percent saying now’s the time to sell.
According to the survey though, most aren’t confident the seller’s market will last much longer.
“The current market conditions definitely seem to favor home sellers, based on both homeowners and buyers’ sentiment,” ValueInsured reported. “However, homeowners’ confidence does not seem to extend equally to the near short term. They are less hesitant to bet on a continued seller’s market six months from now.”
Only half of homeowners said the market would be good for selling six months from now, and 52 percent said buyers would be wise to wait until later this year or early 2018 to purchase a home. Nearly three-quarters of all Millennials said the same.
But while seller sentiment and slowdowns in certain hot markets may be a sign of things to come, ValueInsured said it’s still too early to say the seller’s market is over.
“As home closings and prices are typically reported with a few months of lag time, it is still premature to know if other markets will follow based on real home sales data,” the post reads.
Only time will tell. See the full analysis at ValueInsured.com.