Buying a Home? Zillow Thinks Home Prices Will Fall This Year

Real estate marketplace platform Zillow (NASDAQ: Z) published a report today saying it believes home prices will dip 2% to 3% this year from pre-coronavirus levels, with prices returning to the levels seen at the end of 2019 by the third quarter of 2021. In what it believes to be the most likely of several scenarios outlined in the report, Zillow predicts that sales could rebound at a rate of about 10% per month after the initial plunge, as a quick economic recovery follows a short-term recession when the economy reopens. At the end of April, the National Association of Home Builders (NAHB) said that home builder confidence in 55 markets dropped to its lowest level since the fourth quarter of 2012.