From this year to next, Zillow economists predict home prices will continue rising but sales will take a slight hit. Economists forecast a 11.8% home value appreciation growth through April 2022 with 2021 existing home sales to be 10.3% higher than 2020. Home price growth picked up speed during the past six months, resulting in Zillow adjusting its predictions from 10.4% value appreciation through April 2022 to the current 11.8% forecast. On the other side, sales forecasts for existing homes dipped down after seeing March numbers, from 6.41 million to 6.23 million.
Mounting affordability concerns contributed to the slightly lower outlook, outweighing recent improvements in pending sales and mortgage application activity.
That said, enduring demographic tailwinds from the aging millennial and Gen Z generations, historically low mortgage interest rates and an improving economy should continue to support increased sales volume in coming months.
Our full suite of 1-year home value forecasts for the nation, select metros and ZIP codes can be found here.
PB Topical Ref
