Zillow and CoreLogic are joining forecasts for the housing market prices after the COVID-19 pandemics have hit the market in the first and the second quarter of 2020. The survey includes more than 100 different specialists and real estate economists that participated in the initiative to predict the housing prices in the following period. Based on the collected data, Zillow and the team concluded that the prices in the housing market may head to a decline further into 2020.
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Analysis by Zillow and the Team Predicts a Slight Decline
Analytics by Zillow concluded that there could be a slight decline in the housing market prices. The decline could go to -0.3% based on the collected data. The analysts haven’t had such a prediction since the Great Recession, deeming the forecast negative. During early 2020, economists had an even graver prediction, setting the forecast to a drop by -3.3% in home prices for the year. Moreover, CoreLogic changed their prediction to -2% drop for housing prices.
Housing Outline Negative for the First Time Since 2012
Terry Loebs, the founder of Pulsenomics that also participated in the survey together with Zillow and the team, stated that this case marks the first time since 2012 that the housing outline turned negative. Loebs also added that long-term predictions differentiate from one country to another while projections for the prices in the market in 2022 are inched higher. The outbreak of COVID-19 was the main catalyst in the decline of housing prices.
Prices to Rebound in 2021
Zillow is further predicting that the prices in the housing market should go through a rebound in late 2021. Moreover, Zillow’s prediction forecasts a -1.8% drop in prices by October 2020. Sales are also plunging with -44% drop in inventory recorded in mid-April 2020.
