Zillow economists have adjusted their 12-month national home price forecast, now predicting a decline of 0.9%. This marks a significant shift from earlier projections that anticipated a 2.9% increase. Continuous downward revisions point to challenges in housing affordability, mainly caused by rising home prices during the pandemic and increasing mortgage rates. With the current market indicating more active listings and buyers opting to rent, the economic landscape suggests that affordability remains a central hurdle, expected to impact price growth significantly.
The rise in active listings is fueling softer price growth, as greater supply provides more options and bargaining power for buyers, according to Zillow.
Affordability is still challenging buyers. A mortgage payment on a typical home in March required about 35.3% of median household income nationwide when using a 20% down payment.
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