(RightWing.org) – There could be good news if you’re selling your home next year – but if you’re trying to get on the property ladder, things aren’t looking quite so rosy. The inflation pushing up the cost of living is hitting extra hard in the property market.
In September, online real estate platform Zillow predicted that US home prices would rise by 11.7% in 2022. Now, the company revised its prediction upwards. On November 17, Zillow announced they expect prices to rise by 13.6%.
Zillow thinks home prices in my zip code outside Austin rose 46% this year and predicts another 20% next year. This is bananas. pic.twitter.com/Gjov0yvc5o
— Patrick W. Watson (@PatrickW) December 11, 2021
Zillow says the price increases are being driven by a shortage of homes on the market, leading to fierce competition for those that are available. That’s bad news for potential buyers, especially as Americans already feel the squeeze from inflation and high energy prices. For people already watching their disposable income dwindle, buying a house in this market could be an impossible dream.
However, there’s still hope. Zillow might be predicting near-record price hikes, but other analysts disagree. Financial analysts CoreLogic think prices will rise by a much more modest 1.9%, while the Mortgage Bankers Association expects them to fall by 2.5%.
It’s also worth remembering Zillow predicted house prices would fall when the COVID pandemic hit. In the 12 months from August 2020, they rose by 19.9%. Bottom line: Take all these predictions with a large pinch of salt.
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