Median house prices could rise by 5.4% in 2013 and 4.4% in 2014, according to a new survey of 105 economists, real estate experts, investors and market strategists conducted by Zillow.
“The panel’s expectations of near-term home value appreciation remaining above historic norms are consistent with a market struggling to satisfy strong demand from buyers attracted by rock-bottom interest rates and improving economic conditions,” said Zillow chief economist Stan Humphries.
Back in early March, the experts estimated that house prices would be up just 4.6% in 2013.
While the latest survey shows the panelists are more bullish on this year and 2014, Humphries noted they expect more modest price appreciation in the following years.
On average, they see annual home value growth of between 3.5% and 3.7% from 2015 through 2017.
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Nearly half (48%) of the respondents said there is a “moderate to high risk” of a new housing bubble forming.
“How the Federal Reserve handles the eventual winding down of its policy of quantitative easing will be critical in determining if the current period of rapid appreciation is a benign bounce off the bottom, or a more dangerous bubble being re-inflated,” the Zillow chief economist said.
