Housing Market Forecast 2024 & 2025

Abstract

Housing Market Forecast 2024 and 2025 The Zillow home price expectations survey found that the housing market is likely to recover to pre-pandemic, 2019 norms by 2024, at least in terms of inventory and the proportion of purchases made by first-time home buyers. Home prices have grown 32 percent in the previous two years as a result of a shrinking number of properties on the market. Another Zillow Home Price Expectations survey conducted in June shows that despite a more than 100-basis point increase in mortgage rates since the previous survey just three months ago and the potential for higher rates in coming months, the panel's expectations for 2022 home price appreciation still rose to 9.3% from 9.0% last quarter. Because there are not enough houses available to meet demand, home prices will continue to rise, but the combination of rising home prices and elevated mortgage rates means fewer people will be able to afford to buy. Home prices do not appear to be decreasing, even in some of the country's most expensive markets, the tier one markets. Capital Economics forecasted that the U.S. housing market will experience a 5 percent decrease in house price growth by mid-2023, followed by a "Gradual rebound" to a 3 percent annual price rise by the end of 2024. A 5 percent fall would definitely constitute a price decrease, but it would not cause home prices to spiral out of control.