Zillow Is Forecasting For Home Prices To Increase 13.5% By Mid-Year
Robust home value growth expected to continue throughout 2021
Zillow's latest forecast calls for annual value growth to peak as high as 13.5% by mid-2021, and for home values to end 2021 up 10.5% from their current levels. They also expect existing home sales volume to remain elevated over the next 12 months due to low mortgage rates, an improving economy, and high demand.
The housing market ended 2020 with new records. Home values were up sharply in Q4 and notching their fastest quarterly growth rate on record. Low mortgage rates are bringing in buyers by keeping monthly payments in reach even though prices of homes are going up.
At the end of 2020, the typical U.S. home was worth $266,104 which is up 8.4% from a year ago. The shows the largest annual increase since January of 2014. The median time of market of homes for sale was also extremely short at just 14 days.