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Zillow sees home prices falling this year. Apart from a blip a couple years ago, it would be the first time prices fell since the Great Financial Crisis



  • If the expectation is a fruitThis will be the first time that home prices have decreased at the national level, on an annual basis (regardless of a two-year summit), because the great financial crisis when the domestic values ​​decreased on an annual basis every month from July 2007 to June 2012. But “it is a completely different environment,” and an economist in Zillow-and while it may help buyers to each other, the sellers will not put underwater.

House prices rarely decrease. But this may change.

Zillow expects that home prices will decrease by 1.9 % this year. I previously expected 0.6 % to increase. It was until April. Zillow researchers wrote: “The mixed rise and high mortgage rates indicate a possible decrease in prices by the end of the year,” Zillow researchers wrote. “With the increase in supply, buyers acquire more options and time to make a decision, while sellers reduce prices at record levels to attract bids.”

What this means is after years of housing market as many people did not buy or sell, the sellers returned more than buyers. It tends to standards for buyers, as the prices of homes and homes are available for sale for a longer period. The background of the economic uncertainty launched by the president’s introductory agenda, which has already been nurtured in stock and bond markets, has only things. Buyers may decline more, forcing the hands of the sellers.

Buyers and potential sellers have declined in the past two years after the high prices of homes throughout the epidemic, and mortgage prices have increased after a long time. Some have not been able to buy while others refused to sell because they did not want to lose the mortgage rate much less. Home sales are depressed due to this payment and observation, although it seems that buyers are still steadfast and sellers are tired of waiting.

If Zillow’s expectations begin in the fruits, this will be the first time that home prices have decreased at the national level, on an annual basis, since the great financial crisis. There was a summit two years ago in June 2023, but it was only 0.2 % slip and was only negative for this month. Before that, the last time the house values ​​were negative on an annual basis in June 2012, and it fell on an annual basis every month of July 2007 to that time; A total of five years of decline reached 23.1 %.

Currently, “It is a completely different environment”, the big economists told Zillow Kara Ng luck. She said later, “They are not bear expectations,” she said later. This time, homeowners will not be forced to sell, and the way they were during and after the financial crisis, but because buyers are volatile and do not return to the housing market with the same numbers in which the sellers are marginalized.

In addition, since home prices have increased a lot throughout the epidemic – 44.5 % since March 2020 – it will be a correction, not a correction. Nug called it “really not sustainable” and claimed, “It is expected that there will be a degree of correction.”

Less than 2 % decrease is not much, but any comfort when it comes to prices is welcome to anyone who wants to buy, especially because we live in a world where a house of a million dollars is in the half of all states and no one really knows where the mortgage rates go. However, it is not a bad situation for the sellers. They have benefited from years of appreciation, and this is just a retreat. If there are more declines in the future, this may be a different story. But NG could not say what would happen as soon as the year ends. She said: “All we can say is that the owner of the house is in a place that I do not think will have to sell at all, so that he puts a floor on the amount of prices that can decrease.”

This story was originally shown on Fortune.com


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2025-04-29 11:05:00

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