Annual Home Value Growth Is Accelerating Ahead of Spring Buying Season
Annual home value growth is expected to peak yet again at the end of the spring homebuying season before dropping off at the start of 2023, especially as demand outpaces supply nationwide, says Zillow. Annual home value growth is predicted to hit 22% in May, and monthly home value growth will also continue to accelerate.
At the current growth rate, the price of a typical U.S. home could surge to $400,000 by February 2023, though persistent inflation could lead to higher mortgage interest rates and a drop in housing demand.
The seasonally adjusted annual rate of existing home sales in February is expected to total 6.36 million, down from 6.5 million in January 2022 but up from 6.17 million in February 2021 (February 2022 existing home sales data are scheduled to be released by the National Association of Realtors on March 18, 2022). Existing sales volume (SAAR) is expected to remain the same in March as in February, before climbing slightly to around 6.4 million, where it is forecast to remain through the remainder of the year.