Hope on the horizon for the housing market

U.S. home prices are expected to rise about 3 percent a year from 2013 to 2016, according to Zillow, although they will continue to decline through late 2012 or early 2013 as negative equity and weak job growth hinder a real estate recovery, Bloomberg reported.

The projected prices expected to hit in 2016 are just slightly below appreciation rates experienced before the residential market collapsed, Zillow said. The real estate data provider surveyed more than 100 economists, property experts and investment and market strategists.

The survey is based on the projected path of the S&P/Case- Shiller U.S. National Home Price Index over the next five years. Home prices have fallen 31 percent from a July 2006 peak through September, based on a Case-Shiller index of values in 20 U.S. cities.

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