Zillow Research• Sep 17 2024
Zillow’s latest forecasts project home value growth and existing home sales each to see minor upticks, albeit at still-low levels relative to historic norms. Zillow now expects home values to climb by 2.1% in 2024, a modest uptick from last month’s projection of 1.8% growth over 2024. Over the next 12 months, Zillow forecasts home values will grow 1.4%.
In terms of existing home sales, Zillow now anticipates 4.1 million such transactions will occur in 2024, up 0.4% from last year, and 4.3 million sales in 2025, a further improvement of 5.3%.
Easing inflation and more accommodating mortgage rates have modestly improved affordability for would-be home buyers, a dynamic that should help to boost listing activity and sales. However, while demand should improve some as a result, expectations for home value growth remain muted in large part because of steady increases in for-sale inventory. The number of homes on the market is up 22% from last year, putting some downward pressure on prices. For buyers, this means there are more options and bargaining power.
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