If you’ve read my housing market updates you’ve seen the sale price tick down 1-4% over the past months. What does Zillow have to say about our housing market?
Zillow predicts that US home prices will rise 6.3% in the next 12 months, above the historical average.
- Home prices will stop falling and have will begin rising again in the coming months.
- This is due to a lack of homes for sale, as homeowners are reluctant to sell their homes with low mortgage rates.
- Zillow’s forecast is more bullish than other forecasts, but it is still possible that home prices will fall further.
The 48 markets that Zillow is most bullish on are spread across the country and have two things in common: tight inventory levels and less deteriorated affordability.
- For Volusia and Orange County, Zillow believes the market will increase by 6-7%!
- These markets did not get as extended beyond local fundamentals as other markets, such as Boise and Austin.
- It is possible that these markets will continue to see home price appreciation, even as the market enters the seasonally slower second half of the year.
Overall, Zillow’s forecast is bullish, but it is important to remember that there is still uncertainty in the market.
Thanks for reading,
Chris
