Home prices may fall slightly in 2012, according to projections released today by online real estate hub Zillow. Based on a survey of more than 100 economists, real estate experts and investment and market analysts, Zillow’s Home Price Expectations Survey shows a 0.7% decline in average home prices for 2012.
The estimate is down from survey’s previous projection that home values will lose 0.2% this year. Positive home appreciation is expected for 2013, at a rate of 1.39%—revised down slightly from a projection of 1.75% appreciation made in late 2011.
Of those economists in the survey, the most optimistic project a 1% increase while the most pessimistic see additional losses of 2.8%. The most optimistic estimates show housing gaining 19% in value over the next five years .
Written by Elizabeth Ecker