More than 100 economists and real estate experts who participated in Zillow’s Q3 Home Price Expectations Survey say they expect the housing market to remain relatively stable in the coming months.
Their predictions are based on the premise that many homeowners have put off listing their homes for fear of having to then buy or rent while prices are high. Improvements in buying conditions may be modest, but the market is cooling, which should put potential sellers at ease.
The survey is sponsored by Zillow and conducted quarterly by Pulsenomics.
“Across the U.S., home value appreciation rates and annual rent price increases are at historically high levels, and home price expectations are now the highest we’ve recorded in the 12-year history of this survey,” said Pulsenomics founder Terry Loebs.
“The silver lining for aspiring homeowners is that the worst of the housing supply crunch looks to finally be behind us, and most experts believe that the past year’s rapid price boil has begun to simmer down.”
Analysts surveyed by Zillow say listings will increase sooner rather than later. More listings from both homeowners and builders are expected on the market in the next 12 months. But foreclosed homes won’t play a huge role moving forward, even as federal protections expire.
Respondents said they expect the largest number of homes on market to come from current homeowners moving, which they anticipate will comprise 39.7% of listings over the next year. Only 5.4% of properties on the market are expected to be foreclosed homes.