Buyers face less competition
The housing market will march at a slower pace this winter. That's good news for potential buyers who struggled to ink a deal during the fall.
Home sales have taken a dip after more than two years of year-over-year increases. A housing report by Re/Max found that home sales dropped 15.9 percent in November, compared with the previous month, and 7.8 percent compared with a year ago. The report is based on Multiple Listing Service data in 52 metro areas.
Home prices won't follow the same trend as home sales, Yun says.
"But there will be less of a bidding frenzy than before," he says. And don't dare call this a buyer's market yet. "It's slightly tilted towards favoring the seller over the buyer."
Still, buying a home should be a bit easier this year as the inventory of homes for sale increases.
"We are going to see more inventory coming online," says Errol Samuelson, president of Realtor.com. "Homebuilders are calling for 1.1 (million) to 1.2 million housing starts next year, which is much better than a couple of years ago. And as home prices appreciate, people who were underwater will feel more comfortable putting their homes on the market."