Housing Pricing Increases to Slow by 2014?
According to a recent survey by Zillow, survey participants predicted that median home values will increase 6.7 percent 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 increases 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.
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, but also 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 the value of your home, contact the realty experts at the Zwahlen Team.