More than 100 forecasters in a national survey said they expect the home values to reach an average of 5.4 percent year-over-year and that current Federal Reserve policies post some risk of re-inflating the housing bubble.
In the survey of 105 economists, real estate experts and investment and market strategists, panelists said they expected median U.S. home values to rise to $165,280, on average, by the end of 2013. At the end of 2012, the U.S. Zillow Home Value Index stood at $156,800. The survey was sponsored by Zillow and is conducted quarterly by Pulsenomics LLC.
In the survey conducted in late February and early March, respondents said they expected average home value growth of just 4.6 percent in 2013. Looking forward, respondents predicted average home value appreciation of 4.4 percent in 2014, up from prior expectations of 4.2 percent.
While panelists were more bullish on near-term home value appreciation this year and into 2014, their expectations for nationwide home value growth in 2015, 2016 and 2017 were slightly more pessimistic than in prior surveys. On average, panelists said they expect annual home value growth between 3.5 percent and 3.7 percent from 2015 through 2017, down modestly from previously expressed expectations in the 3.6 percent to 3.8 percent range. Cumulatively, survey respondents predicted home values to rise 22.3 percent, on average, through 2017.