Watch below for an update on the most recent Zillow Home Price Forecast for 2022:
Zillow’s Review of 2021
Zillow is still expecting home prices to skyrocket in Orange County and in many other areas across the country in 2022. A few days ago Zillow released their most recent forecast. Between January 2022 and January 2023 they are expecting year-over-year price growth of 17.3% nation wide. For Orange County, they are expecting most ZIP codes to be up about 18-20%. If you want to see their forecast for a specific ZIP code, you can contact me anytime and I can send that information over to you. I’m Tim Hamilton with StellarQuest Real Estate. In this video we are going to be looking at a few of Zillow’s most recent market forecasts and reports. If you enjoy this video please hit the like button below and subscribe if you like to stay up-to-date on the housing market.
Zillow Home Value Index in 2021
The Zillow Home Value Index rose 1.5% in January 2021 compared to December, and is up 19.9% compared to January of 2020. The rise in home values has been accelerating since November 2021, and if price growth were to continue at this rate, we would have an annual growth rate of 19%. We did see a slight slow down in the pace of the market nationally. In June, the typical U.S. home spent just one week on the market before accepting an offer. That rose to about 13 days in December and January. It is important to note that homes typically take longer to sell in the fall and winter due to kids going back to school, the holidays, and difficult weather in other areas of the country. I will add that in Orange County, the expected market time is basically the same as it was in June 2021, which means the market has not slowed at all locally.
Zillow Home Price Forecast
Now lets take a look at the Zillow home price forecast for the rest of 2022. Home price growth is expected to continue accelerating through the spring before peaking at 21.6% annual growth in May. At that point, homes price growth will likely start to slow through January 2023. Zillow expects 6.2 million existing homes to sell in 2022. That would be a 1.6% increase from 2021, which had a very strong number of home sales. They do caution that there are several risks that could change the outcome of their forecast. The main risk they focus on is rising mortgage rates, which could cause issues with buyer demand, specifically in the more expensive markets.
Please keep in mind that real estate is a highly local market. While they are forecasting a 17.3% national increase in home values, some local areas are expected to perform better than others. If you want to see Zillow’s forecast for your specific ZIP code please contact me and I’m happy to send that information to you. If you’re thinking about buying or selling a home please feel free to call or email me anytime if you want to discuss the market or how you can accomplish your goals. If you’re in Southern California I can personally help you, and if you’re located somewhere else I can refer you to an experienced agent in your area.
Below are a few interesting charts related to housing market values:
Stocks vs. Home Values: https://www.longtermtrends.net/stocks-to-real-estate-ratio/
Home Values vs. Median Income: https://www.longtermtrends.net/home-price-median-annual-income-ratio/
Home Values vs. Inflation https://www.longtermtrends.net/home-price-vs-inflation/
Get More Real Estate News: https://stellarquest.com/category/news/
StellarQuest Real Estate – Lic #02077900
www.StellarQuest.com Video
By: Tim Hamilton
Broker Associate
Lic# 01959966
(714) 486-4086
timsellsca@gmail.com