Home values nationwide have been growing at a breakneck pace for much of 2013 and are predicted to finish the year up an average of 6.7 percent compared with the end of 2012, according to the latest Zillow Home Price Expectations Survey. But that rapid pace of appreciation won’t last forever, and it is expected to slow considerably next year and over the next five years.
The survey of 108 economists, real estate experts and investment and market strategists was sponsored by leading real estate information marketplace Zillow, Inc. and is conducted quarterly by Pulsenomics LLC.
Panelists said they expect appreciation rates to slow to roughly 4.3 percent next year, on average, eventually falling to 3.4 percent by 2018.
“The housing market has seen a period of unsustainable, breakneck appreciation, and some cooling off is both welcome and expected,” said Zillow Chief Economist Dr. Stan Humphries. “Rising mortgage rates, diminished investor demand and slowly rising inventory will all contribute to the slowdown of appreciation.”
Read the entire article here: