Real estate research firm Zillow said Wednesday that home prices in the U.S. will fall about 0.7 percent in 2012, slightly more than the 0.2 percent it previously predicted.
March's Home Price Expectations Survey shows that economists expect home prices will begin to rise in 2013, although expectations for how much they would rise were tempered when compared with their expectations in the December survey; economists now predict home prices will rise 1.4 percent in 2013, compared with their previous prediction of 1.8 percent.
"The fourth quarter drop in the national Case-Shiller Index was sharper than some expected and is the likely reason so many of the economists in the survey revised their forecasts downward," said Zillow Chief Economist Stan Humphries. "Looking at the longer history of these forecasts by top economists, the bottom in home prices always seems just around the corner but never quite here. Conditions across the country vary considerably. Some markets have already hit bottom and are experiencing tight inventory and multiple offers, while foreclosures and negative equity continue to pull down the housing market in many other parts of the country."
The survey was compiled from 104 survey responses by a diverse group of economists, real estate experts, and investment and market strategists. The survey was based on the projected path of the S&P/Case-Shiller U.S. National Home Price Index for the coming five years.
