The housing market’s recovery looks to continue its upward trajectory in 2013, according to the December 2012 Zillow Home Price Expectations Survey.
The growing optimism continues as professional forecasters participating in Zillow’s survey expect home prices to rise 3.1% in 2013, up from previous expectations of 2.4% recorded in September.
The survey’s 105 panel members comprised of economists, real estate experts, investment and market strategists who based their predictions on the projected path of the S&P/Case-Shiller U.S. National Home Price Index during the next five years.
Respondents believe home prices to increase in full-year 2012 by 4.6%, up from its prior forecast of 2.3% in the September 2012 survey. Additionally, respondents expect home prices to increase by more than 3% annually through 2017, writes Zillow.
“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 Zillow Chief Economist Dr. Stan Humphries.
Even the most pessimistic quartile of of panelists predicted an average increase of 3% for 2012 home price values, as well as 0.8% rise in 2013 values, notes Zillow.
“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,” said Humphries.
Written by Jason Oliva