Zillow's Changing Home Price Forecast and Best Time to Buy a Home Revealed

Zillow economists have revised their home price forecast, predicting a 4.9% increase in U.S. home prices between August 2023 and August 2024, down from their previous forecast of a 6.5% increase. The revision is attributed to the anticipation of higher mortgage rates and a slight decrease in market tightness. The recent increase in new listings entering the market has helped ease market conditions, but inventory remains tight. While Zillow expects national home prices to rise, some firms like Morgan Stanley and Moody's Analytics believe there may be further declines before the end of 2024.