If you’re hoping to buy a house the good news is that Zillow has downgraded its predictions from April 2022, but the bad news is that it’s still expecting double-digit price growth over the next year. Let’s take a closer look.
Zillow carries out a market research report every month, which focuses on predicting trends within the real estate market over the next year. Its latest piece projects 11.6% growth in home prices between May 2022 and April 2023.
While that might sound like a lot, it’s a lot lower than Zillow’s previous report, which forecasted a massive 14.9% growth over the next year. Plus, both projections are significantly below the price growth of almost 20% we experienced in 2021.
This has made it more expensive to get a mortgage, contributing to lower demand for housing — especially when combined with increasing costs of living due to inflation and wages that are failing to keep up.