In February, Zillow’s housing economists made a bold call that U.S. home prices had bottomed out and would continue. 0.5% increase over the next 12 months.
In the months leading up to that call, U.S. home prices, as tracked by the Zillow Home Value Index, not only started to climb again, but also hit new all-time highs. The improvement was fueled by tailwinds generated from tighter inventory levels, which were strong enough to overcome headwinds from the mortgage rate shock.
That rise in U.S. home prices came as Zillow repeatedly revised its home price forecast upward. In its latest revision, Zillow forecasts that U.S. home prices will rise 6.5% between July 2023 and July 2024—up from the 6.3% call it made last month. From the perspective, US housing prices will be monitored Case-Shiller An average annual increase of 5.5% since 1975.
“Limited inventory for sale is pushing home prices upward, even as mortgage rates rise,” Zillow home economists wrote. “More than half as many homes were listed for sale in July compared to the same month in 2019, and 29% fewer new listings entered the market in July than was typical for this time of year prior to the pandemic. This shortage has created competition for homes for sale. Under contract (or ‘pending’) in July ‘) homes that moved did so in 12 days — a week and a half faster than was typical in 2018 and 2019.
While Zillow economists expect national home prices to rise 6.5% over the next 12 months, their forecast model predicts 120 of the nation’s 400 largest housing markets will increase 7.0% or more over the next 12 months.
There is no single unifying factor; These 120 home markets are located across the country. They span the West (Santa Maria, Calif.), the South (Tampa), the Midwest (Indianapolis) and the Northeast (Scranton, Pa., etc.).
While Zillow Thinks U.S. Home Prices Are Bottoming – CoreLogic and Economists AEI Housing Centre And believe me—not every company agrees. Companies like Moody’s Analytics And Morgan Stanley I think US home prices will have to give way a bit more, and that will happen between now and the end of 2024.
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