Economists in the third quarter said they expect home prices to rise by 2.3 percent this year, well up from expectations in the second quarter that had prices falling 0.4 percent for the year.
The “September 2012 Zillow Home Price Expectations Survey” is based on responses from a group of 113 economists, real estate experts and investment and market strategists.
The study was conducted by Pulsenomics LLC and is based on the projected five-yar path of the S&P/Case-Shiller U.S. National Home Price Index.
“This is further evidence that we’re seeing a true recovery in the housing market,” said Dr. Stan Humphries, Zillow’s chief economist.
The most optimistic quartile of panelists predicts a 4.4 percent increase in 2012, on average, while the most pessimistic predict an average increase of 0.3 percent, Zillow reports.
So don’t be discouraged by the traditional seasonal price decline blip this winter. Buying tapers off for holidays and could even show a year-over-year price decline. On an ongoing month-to-month basis, since early 2012, prices have edged up.
“Not since mid-2010 – in the midst of the home buyer tax credits – have we seen this group so bullish on housing. It’s refreshing to see this optimism at a time when the market seems to be making an organic recovery, in the absence of an artificial stimulant like the tax credits,” said Humphries.