Home prices will increase by 3.1 percent in 2013 and top off 2012 with a 4.6 percent gain, according to Zillow’sDecember Home Price Expectations Survey.
The survey, which was conducted by Pulsenomics LLC, was based on responses from 105 economists and industry experts.
In September, survey panelists projected more modest gains and predicted prices would rise by 2.4 percent in 2013 and increase overall by 2.3 percent in 2012.
Through 2017, panelists expect prices to increase by more than 3 percent annually.
Among the experts surveyed, Zillow reported the most optimistic quartile averaged a 6.3 percent increase for 2012 and the most pessimistic experts averaged a 3 percent increase.
“An organic recovery in the housing market really took hold in the latter half of 2012, and this improvement is echoed in some of the most optimistic price projections we’ve seen in years from this group,” said Dr. Stan Humphries, Zillow’s chief economist.
Zillow found predictions for prices in 2013 averaged as high as 4.9 percent among the optimistic panelists and as low as 0.8 percent.
“Record levels of affordability and an improving overall economic picture have really helped buoy the market and have us well positioned for continued growth, albeit slightly slower, in 2013 and beyond,” Humphries added.
The forecast is based on the projected path of the S&P/Case-Shiller Index over the next five years. The most recent S&P home price report revealed a monthly decrease in October for both the 10-city and 20-city indices.
Article by: Esther Cho, DSNews.com, 1/2/13