"Zillow economists just published their updated 12-month forecast, projecting that U.S. home prices-as measured by the Zillow Home Value Index-will rise +1.2% between August 2025 and August 2026. Heading into 2025, Zillow's 12-month forecast for U.S. home prices was +2.6%. However, many housing markets across the country softened faster than expected, prompting Zillow to issue several downward revisions. By April 2025, Zillow had cut its 12-month national home price outlook to -1.7%."
"However, in recent months, Zillow has stopped issuing downward revisions. In August, it revised its 12-month outlook to +0.4%. In September, the forecast increased to +1.2%, and now Zillow has upgraded its 12-month national home price forecast to +1.9%. While Zillow's national home price forecast is no longer negative-it isn't exactly bullish either. Among the 300 largest U.S. metro area housing markets, Zillow expects the biggest home price increase between September 2025 and September 2026 to occur in these 15 metros: Atlantic City, NJ → +5.4% Rockford, IL → +5.1% Concord, NH → %5.1% Knoxville, TN → +5.0%"
Zillow updated its 12-month outlook for U.S. home prices, initially forecasting +2.6% for 2025 but cutting the national outlook to -1.7% by April 2025 after faster-than-expected market softening. Recent months showed a reversal of downward revisions: the forecast moved to +0.4% in August, +1.2% in September, and is now +1.9% for the next 12 months. The national forecast is modest rather than strongly bullish. Zillow projects divergent metro outcomes, identifying 15 metros with the largest expected gains (led by Atlantic City at +5.4%) and 15 metros with the largest expected declines (led by Houma, LA at -7.4%).
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