Zillow Forecasts Housing To Have A “Check Mark” Recovery
Summary
According to a new report from Zillow, buyer demand and healthy housing-market dynamics will prevent U.S. home prices from dropping more than 2.0%-3.0%—or more than 1.7% year over year—in the wake of the coronavirus. Zillow’s forecast, based on published and proprietary macroeconomic and housing data, centers around a baseline prediction of a 4.9% decrease in United States GDP in 2020 and a subsequent 5.7% increase in 2021. Under that scenario, which Zillow believes is 70% probable, the market is expected to include: ►A 2.0%-3.0% drop in prices through the end of 2020, followed by a steady recovery throughout 2021. A more optimistic scenario (5.0% likelihood) features a 1.0-2.0% dip in home prices through the middle of this year, followed by a robust recovery. "Despite the difficulties, were seeing several signs that there is still a good amount of demand for housing, and buyers, sellers and agents are growing more comfortable moving transactions forward where possible.