Will Detroit's median home values continue to increase, or will they eventually reach unsustainable levels and cause residents to be priced out with a real estate bubble? Of the 66 economists and real estate experts who fully or partially answered the Q4 Zillow Home Price Expectations Survey's questions on 20 U.S. markets, only one believes that Detroit is already in a real estate bubble. No respondents believe Detroit is at risk of a bubble in the next 12 months, and only one respondent believes that the Detroit market is at risk of a bubble in the next three years. For the next five years, 31 respondents do not believe Detroit is at risk, but there is one who does.
Zillow expects the national housing market to cool off in the coming years, but is uncertain as to what the extent the cool down will be. What the 108 economists and real estate experts surveyed expect is for the nation's median home values to grow 3.9 percent year-over-year in 2015, but fall by 3.4 percent by the end of 2016. If this scenario ends up being correct, the nation's median home value will result in being at least $215,000 by the year 2020. There was no consensus on the predicted annual home value growth. In Zillow's Q3 Zillow Home Price Expectations Survey, the survey respondents expected a 4.1 percent national growth for the nation's median home values by the end of 2015. In the Q4 Survey, the survey respondents do not expect the U.S. housing market to collapse in the coming years as it did in the previous decade.
Loading comments...