Home prices in the United States, which are showing signs of cooling following a pandemic-recovery spike, are now expected to rise at a slower rate than previously predicted, according to real estate marketplace firm Zillow.
In its March report, Zillow predicted home prices would rise 17.8 percent year-over-year by February 2023. In its latest forecast published in June, Zillow predicts home prices will appreciate only 9.7 percent for the 12 months ending May 2023.
Not only is the latest prediction a major downward revision of the company’s earlier estimate, it also signifies a major deceleration from the 20.4 percent price appreciation seen over the past year. The reason for the company’s downward revision of home price growth is the cooling housing market….