Anticipating mortgage rates to remain elevated and new home listings to slightly rise in the coming months, some experts predict home prices would increase 4.9% from August 2023 through August 2024, according to the latest Zillow Home Value Index.
However, this marks a downward revision from last month’s projection of a 6.5% increase from July 2023 to July 2024.
“August brought an unexpected late-summer uptick in the number of new for-sale listings entering the market,” Zillow said in its data report.
New listings increased by 4% from July to August, according to Zillow’s home value index. That signaled the first time that new listings increased over those two months, according to Zillow’s records.
“To be clear, August’s new listings total – as well as total for-sale inventory – remains well below typical levels seen prior to the pandemic, and inventory conditions remain very tight,” Zilow said. “This unusual late-summer supply uptick helped to ease market conditions some, causing our outlook for home values to cool.”