Economists expect home prices to rise by a total 2.3 percent during 2012, and overall have become more bullish on home prices than they were in the second quarter, according to the September 2012 Zillow Home Price Expectations Survey, compiled from 113 responses from a diverse group of economists, real estate experts and investment and market strategists.
The survey, sponsored by leading real estate information marketplace Zillow, Inc. (NASDAQ: Z) and conducted by Pulsenomics LLC, is based on the projected path of the S&P/Case-Shiller U.S. National Home Price Index during the coming five years.
Survey respondents expect home prices to increase in full-year 2012 by 2.3 percent, up from their forecast of -0.4 percent in the June 2012 survey. Respondents have also revised their forecasts for 2013-2016, predicting steadily increasing home values in each year.
“This is further evidence that we’re seeing a true recovery in the housing market,” said Zillow Chief Economist Dr. Stan Humphries. “Not since mid-2010 in the midst of the homebuyer tax credits have we seen this group so bullish on housing. It’s refreshing to see this optimism at a time when the market seems to be making an organic recovery, in the absence of an artificial stimulant like the tax credits.”
The most optimistic[i] quartile of panelists predicts a 4.4 percent increase in 2012, on average, while the most pessimistic[ii] predict an average increase of 0.3 percent.
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