Zillow study reveals lower than expected home prices

The latest Zillow Home Price Expectations Survey reveals that economists continue to temper their expectations about a recovery in home prices.

The survey, compiled from 104 responses by a diverse group of economists, real estate experts, and investment and market strategists, records expectations about the projected path of the S&P/Case-Shiller U.S. National Home Price Index over the next five years.

After a sharp downturn in home prices during the fourth quarter of last year, economists in the March survey revised their expectations downward for home price changes during 2012 and future years.

Economists expect home prices to fall 0.7 percent in 2012, which is more negative than their previous expectation of a 0.2 percent decline recorded in the December 2011 survey. Most participants now predict home prices will rise 1.4 percent in 2013, compared to their previous prediction of a 1.8 percent rise.