Predictions on Where the Real Estate Market is Going…
A majority of more than 100 economists and real estate experts say that home prices will likely bottom by 2013, according to the Zillow June 2012 Price Expectations Survey. The real estate experts surveyed predict that home prices will fall 0.4 percent this year before inching up by 1.3 percent next year.
To support their claim, this trend has already begun to happen. The first quarter this year has brought with it a 2% drop in home prices and the expectation is that they will begin their rebound in the next quarter. In fact, appreciation predictions support that the value will increase by 3.5% between 2012 and 2014!
“It’s good to start to see some convergence of expectations among economists, as it lends further support to the claim that a bottom is real,” says Stan Humphries, Zillow’s chief economist. “However, the fact that more than half of respondents believe that the home ownership rate will fall lower should be a sobering reminder that significant challenges remain ahead for the housing market, from negative equity to millions of foreclosed home owners who now have impaired credit, making a return to home ownership harder than it would be otherwise.”
Source: Zillow Inc.