Zillow's revised home price index forecast for 2025 increased

[GON]

Zillow revised its home price forecast for 2025 to 2.9 percent macro for the entire USA. Of course, every local housing market may be different.

Despite inventory rises in places like Southwest Florida, good homes are still selling for above list price. Flawed homes are the homes that sit in the market looking for uneducated buyers, it buyers that can no longer wait for a good home.

Of course, hard for a homeowner with a 2.25 percent mortgage to want to upgrade to a better home at 6.5 percent mortgage.

“This is an upward revision to our outlook from last month. Opposing forces are working to keep home values climbing, but only at a modest pace. Inventory remains very low by historical standards, which, paired with expectations for declining mortgage rates and modest improvements in other leading indicators of home sales, is helping to buoy home value appreciation,” wrote Zillow economists. “At the same time, modest increases in new for-sale listings and persistently high mortgage rates are combining to limit price growth.”

https://www.fastcompany.com/91233941/housing-market-map-zillows-revised-2025-home-price-forecast

 

[skyactiv]

My parents want to sell their summer house in Port Clinton, OH. That town is a strange mix of housing with pricing all over the map. Their house would be lucky to fetch $200K I'm guessing.

 

[SC Maintenance]

I heard a stat the other day (Melody Wright) closings in September were the worst September 1999. Thats not adjusted for population growth. So houses are expensive but no one is buying them.

 

[GON]

I heard a stat the other day (Melody Wright) closings in September were the worst September 1999. Thats not adjusted for population growth. So houses are expensive but no one is buying them.

I studied the housing market in the late 1970s with a huge decline in home sales due to interest rates/ inflation. Yet housing prices during that period actually increased.

 

[SC Maintenance]

I studied the housing market in the late 1970s with a huge decline in home sales due to interest rates/ inflation. Yet housing prices during that period actually increased.

Home prices in the 1970's tripled in value - due to inflation. People wanted out of deflating assets like cash due to extremely high inflation. It was about the only asset class in the 1970's that did well, stocks were flat, bonds lost a ton. The other assets that did well were gold, silver and other commodities.

Its very possible current housing prices remain where they are - but it would take even more corporate or off-shore buyers to keep buying, but I think there getting out - so I am told? New buyers are not entering the market - the majority of buyers are second home, retirees moving, etc.

No idea where it will go. But the market is clearly broken. Perhaps they will turn it into a wall street asset class and we will all become a nation of renters

 

[GON]

The

Home prices in the 1970's tripled in value - due to inflation. People wanted out of deflating assets like cash due to extremely high inflation. It was about the only asset class in the 1970's that did well, stocks were flat, bonds lost a ton. The other assets that did well were gold, silver and other commodities.

Its very possible current housing prices remain where they are - but it would take even more corporate or off-shore buyers to keep buying, but I think there getting out - so I am told? New buyers are not entering the market - the majority of buyers are second home, retirees moving, etc.

No idea where it will go. But the market is clearly broken. Perhaps they will turn it into a wall street asset class and we will all become a nation of renters

The U.S. has a unique housing model different than most of the world. Much of the world has homes that are paid for with no mortgage, yet multi generations living in the paid off home.

The U.S. culture when it comes to single generation in a home on a macro basis is unique, but your post makes one ponder if it is sustainable. Maybe the 20 something living in the basement is the new norm?

 

[factorytuned2012]

There's a funny thing called history repeats itself. Caused by human nature

 

[wpod]

The value of our dollar has been destroyed by our politicians.

 

[JeffKeryk]

I just picked up another small condo near here. Silicon Valley property tends to do well over time; people gotta have a place to live.

 

[SC Maintenance]

\

I just picked up another small condo near here. Silicon Valley property tends to do well over time; people gotta have a place to live.

And they can't print more of them.

 

[wpod]

I just picked up another small condo near here. Silicon Valley property tends to do well over time; people gotta have a place to live.

The Bay area has for my almost 72 years of life has been a wonderful real estate market.

 

[wpod]

Home prices in the 1970's tripled in value - due to inflation. People wanted out of deflating assets like cash due to extremely high inflation. It was about the only asset class in the 1970's that did well, stocks were flat, bonds lost a ton. The other assets that did well were gold, silver and other commodities.

Its very possible current housing prices remain where they are - but it would take even more corporate or off-shore buyers to keep buying, but I think there getting out - so I am told? New buyers are not entering the market - the majority of buyers are second home, retirees moving, etc.

No idea where it will go. But the market is clearly broken. Perhaps they will turn it into a wall street asset class and we will all become a nation of renters

Does we will own nothing but be happy ring a bell ?

 

[wpod]

High real estate prices are good.

 

[andrew_j]

The value of our dollar has been destroyed by our politicians.

Happening soon in Jan 2025 the prices and supply of new homes will skyrocket with labor force adjustments.

The housing crisis of 2008 has still damaged the supply as builders dropped back or left market.

 

[SubieRubyRoo]

No idea where it will go. But the market is clearly broken. Perhaps they will turn it into a wall street asset class and we will all become a nation of renters

That’s their stated goal (by 2030 no less): “You will own nothing, and be “happy”

 

[SC Maintenance]

Happening soon in Jan 2025 the prices and supply of new homes will skyrocket with labor force adjustments.

The housing crisis of 2008 has still damaged the supply as builders dropped back or left market.

I keep hearing that were short housing, but the number of "housing units" per population has never been higher. I went back as far as I could - to like the 50's. I published it here somewhere.

Quite possible we need more due to smaller family size. Or maybe just too many of the "housing units" are 2nd homes or Airbnb type things?

There still building houses here, but there still very expensive also.

 

[andrew_j]

I keep hearing that were short housing, but the number of "housing units" per population has never been higher. I went back as far as I could - to like the 50's. I published it here somewhere.

Quite possible we need more due to smaller family size. Or maybe just too many of the "housing units" are 2nd homes or Airbnb type things?

There still building houses here, but there still very expensive also.

The supply is taken up by investors locally. The three “modest” $600k homes that are ranches got snatched up by investors as rentals for $4k-$5k/month across from me. Those companies outbid the nearest real buyer by $50k in two cases.

 

[nickaluch]

My middle daughter n her husband just bought a house on Long Island NY Nassau county South shore paid $950k first time homebuyers. These prices just confuse me I didn't ask don't want to know the monthly mortgage. Zero inventory here is the issue

 

[walterjay]

New homes in my area are hovering around 800K. I feel sorry for people starting out looking for a home. My first home cost $25K @8.5% interest and my parents had to help me out to gather a down payment.

 

[JeffKeryk]

\

And they can't print more of them.

It ain't the printing; it's the land. I have an older house (1962) on a bigger lot. Maybe the next owner will start with a dozer?
But I will leave Los Gatos in a box. I flat out love it here.