Housing Crisis: Not as Bad on Homeownership Perceptions as Expected
According to a recent survey by Zillow, survey participants predicted that median home values will gain a 6.7 percent increase in value over 2012 by the end of this year, and home values are projected to rise approximately 23.7 percent over the next four years.
Considering that the expectation of annual increase predicted in the last quarterly survey was 5.4 percent, this forecast represents a significant jump in value. For a homeowner, that is positive news.
In fact, according to Pulsenomics and Zillow, home values are on track to reach more than $167,000 by the end of 2013, according to the surveyed economists and real estate experts. On average, these panelists predicted home values could approach new record highs by the end of 2017, based on current expectations for home value appreciation over the next five years.
However, many panelists predicted that appreciation rates will slow from 2014 through 2017. The survey participants said appreciation rates were expected to decrease to roughly 4.4% in 2014, and to slip gradually each year, ending with a 3.4 percent rate in 2017.
According to a senior economist at Zillow, the short-term expectation in home value appreciation through the end of 2013 is consistent with a strengthening nationwide housing market recovery that is still coping with high levels of negative equity, low inventory and high demand. The combination of those factors is projected to keep putting upward pressure on home values for the next few months.
For more information about how appreciation rates affect your Danville, Ca home value, contact the realty experts at the Zwahlen team.