Zillow Forecasts a Dip in Home Prices, Rebounding By Next Year

Buyer demand and healthy housing-market dynamics will prevent U.S. home prices from dropping more than 2-3% -- or more than 1.7% year over year -- in the wake of the coronavirus, according to a forecast released today by Zillow®. The forecast says home sales will fall as much as 60% this spring and take through the end of next year to recover, while prices will fall through the year but recover a few months sooner. The recovery is likely to look like a checkmark, with transactions building at a pace of about 10% each month through the end of 2021, according to the forecast by Zillow Chief Economist Svenja Gudell and her team of economists and analysts.