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Home values to rise 22 percent by 2017 - Zillow survey

March 18, 2013 @ 8:53 am

A nationwide panel of more than 100 professional forecasters expects home values to end 2013 up an average of 4.6 percent and rise cumulatively by 22 percent, on average, over the next five years, according to a first-quarter survey by Seattle-based Zillow.

Participants in the Zillow Home Price Expectations Survey predicted home values will rise another 4.2 percent on average in 2014, before moderating somewhat to annual appreciation rates between 3.6 percent and 3.8 percent for 2015, 2016 and 2017.

The survey was conducted February 22-March 7 by Pulsenomics LLC on behalf of Zillow.

"The panel is quite bullish on home prices near-term, considering a pre-bubble average appreciation rate of 3.6 percent per year," said Stan Humphries, Zillow's chief economist. "That said, their expectations are a bit shy of the home value gains of 5.5 percent that we saw in 2012, implying some moderation in the pace of gains.

"The panel expectations are consistent with continued strong home value growth this year fueled by tighter-than-normal inventory of for-sale homes and robust demand attributable to high affordability and a stronger general economy."

On average, panelists predicted home values to rise 4.1 percent annually from 2013 through 2017, exceeding the pre-housing bubble (1987-1999) average annual appreciation rate of 3.6 percent.

This is the first time the predicted average annual growth rate for the next five years has surpassed pre-bubble levels since the survey's inception three years ago.

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  • MelissaL wrote...
    ridiculous
    March 20, 2013 12:45 am
    This is what I do not like about this country. Just as we have read the latest news about housing market being in a process of a slow very slow recovery, we see such a big hike in prices. Don’t you want to stabilize things first and let people get over from their student loans, easy payday loans online ( http://paydayloansat.com/easy-payday-loans/ ), credit cards debts, etc? Why raising prices right away? Haven’t it occurred to our FHA that it may scare potential buyers off? It would have scared me…it would have made me feel insecure and uncertain about my prospective. All I am trying to say is that this is irrational so far.
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  • longwayhome wrote...
    2017
    March 23, 2013 8:08 pm
    Somehow coincides with the duration of the Democrats running the country. When the horrific bush years ruined the economy it has taken the Democrats quite a long time to fix the stupid mistakes. The housing industry, the auto industry, the banks, are all the fault of the republicans and their endless obsession with wars and corruption. Let's all hope and pray that NO republican ever becomes President again. Let's also pray that 2014 will be the end of boner and mitch mcconell, the two biggest crooks that ever pounded a gavel in our Govt.
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