The housing market is expected to see some significant growth as it continues to emerge from the hit it took during the most recent recession. On March 18, real estate research group Zillow released its Home Price Expectations Survey, which asked more than 100 forecasters about their projections regarding the future of the industry. The individuals polled said that they think home values to increase 4.6 percent in 2013 and 22 percent – cumulatively – over the next five years.
Breaking it down year-by-year, respondents predict that property prices will rise 4.2 percent in 2014 and between 3.6 and 3.8 percent in 2015, 2016 and 2017. This is the first time these growth rates have surpassed pre-bubble levels.
"The panel is quite bullish on home prices near-term, considering a pre-bubble average appreciation rate of 3.6 percent per year," Dr. Stan Humphries, Zillow's chief economist, said in the press statement. "That said, their expectations are a bit shy of the home value gains of 5.5 percent that we saw in 2012, implying some moderation in the pace of gains. The panel expectations are consistent with continued strong home value growth this year fueled by tighter-than-normal inventory of for-sale homes and robust demand attributable to high affordability and a stronger general economy."
As the housing market continues to improve and spring – one of the busiest times of the year for the industry – approaches, there is a good chance that more people will begin buying and selling homes. It's important, as always, for lenders to ensure that borrowers can stay on top of their monthly payments, and they can do so by investing in loan management software.