Zillow believes that home prices in the United States are set to rise by more than 6% in the next year


House prices have increased over the past year due to the limited supply of available homes.Frederick J. Brown/AFP via Getty Images

  • Zillow says US home prices are expected to rise as higher mortgage rates keep inventory tight.

  • The real estate listings site predicted a 6.5% increase in house prices by July 2024.

  • Others expect a slight decline in home prices by the end of the year.

Home prices are expected to rise more than 6% in the next year, according to economists at Zillow, which indicates the increasingly bullish trend for real estate listings in the US housing market.

The company’s economists predicted House prices are expected to increase by 5.8% by the end of 2023and it will rise by 6.5% by July 2024, according to his estimates home value index. This means that the median home price in the US will rise to $370,754 by July next year, up from the current median price of $348,125.

This forecast contrasts with what other companies expected by the end of the year. Realtor.com expects a 0.6% decline in home prices By the end of 2023, and Redfin expects a decline of 4%.

Zillow said its forecast is largely due to a shortage in the housing stock, which has driven up home prices over the past year. The available supply of homes on the market has halved since July 2019, the company’s research team estimated.

“Limited inventory for sale continues to drive home prices higher even as mortgage rates remain high,” Zillow researchers said in a recent study. NB. “Tight inventory conditions and persistently high mortgage rates are also expected to continue to limit sales volumes in the coming months.”

Housing affordability has suffered over the past year thanks to higher mortgage rates, exacerbating the problem stuck near the record for 20 years. Although higher rates usually affect demand, they also discourage existing homeowners from listing their properties for sale, as many are looking to hang on to the lower rates at which they financed their homes years ago.

The result is Unbalanced housing marketExperts say affordability is unlikely to improve until mortgage rates fall further. Prices should fall to the 5% range. To unlock more inventory, according to industry veterans.

with There is no relief in sight for the current affordability crisisZillow is now offering potential homebuyers the option to pay Just a 1% down payment on a newly purchased home.

Read the original article at Business interested

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