The number of homes for sale in many parts of the country is increasing compared to last year. This is because high housing costs are making it harder for people to buy homes, leading some homes to staying on the market longer, creating more active inventory. This is starting to translate into slower national home price growth—something economists at Zillow expect to continue over the next year.

Table of Contents

• Zillow’s Latest Forecast

  • Utah Home Price Growth Forecasts

• Bottom Line

Zillow’s Latest Forecast

U.S. home prices, as measured by the Zillow Home Value Index, increased by +2.8% from July 2023 to July 2024.

Zillow’s latest revised forecast expects U.S. home prices to rise just +0.9% over the next 12 months, from July 2024 to July 2025.

“Competition for homes and price appreciation tapered off faster than normal in July as high housing costs continued to stymie shoppers… More options for buyers means less intense competition for each home. That’s evident in the growing share of home sellers cutting their prices. More than 26% of homes on Zillow received a price cut in July, the highest share for any July since at least 2018, when the dataset began,” wrote Zillow economists last week.

Zillow economists added that: “Looking beyond 2024, easing inflation and more accommodating mortgage rates should improve affordability slightly. This would help stimulate housing activity, with both new listings and sales rising over the longer term.”

If Zillow is right, and national home prices rise just +0.9% on average over the next 12 months, some housing markets could see outright home price declines.

Utah Home Price Growth Forecasts

Zillow believes Utah could see mostly flat price growth over the next 12 months.

• Salt Lake metro 12-month forecasted price growth: 0.3%

• Provo metro 12-month forecasted price growth: -0.2%

Bottom Line

While none of these forecasts are ever 100% spot on, understanding the data behind these forecasts can help you make the most informed decision possible. A lot could happen over the next 12 months. Some expect prices to increase because of lower mortgage rates over the next coming months. Others, such as Zillow, expect prices to grow slowly if at all due to increased competition among sellers, and relatively high housing costs compared to several years ago.

To find out how all of this impacts your future real estate plans, don’t hesitate to call me immediately to discuss your specific situation and whether it makes sense to make your next move now, or wait.

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