Home prices will bottom in 2013 but the homeownership level is also expected to fall, according to a survey of economists reported this week by Zillow.
The June 2012 Zillow Home Price Expectations Survey shows home prices declining “only slightly” in 2012, with a bottom by 2013. This marks the first time such a survey has produced agreement among economists indicating that a true bottom in home prices is imminent, Zillow says.
The economists expect home prices to fall 0.4% in 2012—a more optimistic outlook than their previous expectation of a 0.7% decline recorded in March.
When it comes to homeownership, however, those surveyed have a less optimistic view, Zillow reports. They majority expect the homeownership rate to fall below 65%, with several seeing that level fall even lower, toward the record low of 62.9%, established in 1965.
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Written by Elizabeth Ecker