Authorization

Strong Home Prices Expected to Continue Through at Least 2021, But Economic Uncertainty is Clouding Long-Term Outlook

SEATTLE, Sept. 24, 2020 /PRNewswire/ --A After watching the for-sale housing market largely shrug off the potential impacts of the coronavirus pandemic this summer, a panel of experts is singing a much more bullish tune about short-term home price performance than in the spring. But a few clouds appear when looking further out. Skepticism remains in the long term with elevated unemployment expected to persist into the next decade.A The ZillowA® Home Price Expectations Surveyi, sponsored by Zillow and conducted quarterly by Pulsenomics LLC, asks more than 100 economists, investment strategists and real estate experts for their predictions about the U.S. housing market. The Q3 survey focused on the short- and long-term outlook for home prices, as well as expectations for U.S. unemployment.A Just three months ago, when the housing market was in the midst of what turned out to be only a brief lull in activity, the panelists expected a slight (0.3%) decline in home prices for 2020. That dip has failed to materialize thus far as historically low inventory and heavy buyer demandA have pushed up prices, and panelists have adjusted expectations accordingly.A Panelists are now more optimistic than they were even before the pandemic, forecasting a 3.7% increase in home prices this year compared to an average expectation for a 3.3% increase in the first quarterly survey of 2020. Expectations for home prices in 2021 were also raised, up to 2.7% average forecasted growth from 0.9% last quarter, marking the most optimistic the panel's outlook for 2021 has been since Q1 2018.A "In many ways, the pandemic has helped supercharge a pre-existing housing supply shortage that has struggled to keep up with strong demand," said Zillow economist Treh Manhertz. "Many of those fortunate enough to have kept their jobs are looking to take advantage of low mortgage rates by jumping into the market, and they're finding competition to be fierce with inventory as limited as ever. The longer-term path for prices will depend largely on the course of inventory, including whether homeowner finances are stable enough to avoid a wave of distressed sales when forbearance terms expire and at what level builders, who are reporting sky-high confidence, can bring homes to market."
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Октябрь 2020    »
ПнВтСрЧтПтСбВс
 1234
567891011
12131415161718
19202122232425
262728293031