With July’s existing-home sales numbers flashing across screens of all sizes, Zillow has adjusted its annual outlook for 2022—lowering expectations.
According to a new report, Zillow now estimates a 14.1 percent decrease in existing-home sales for 2022 compared to last year. That means 5.3 million existing-home sales nationally by year’s end.
Additionally, Zillow now forecasts 2.4 percent home value growth through the end of July 2023. This is a significant update from last month’s forecast of 6.9 percent appreciation through June 2023.
“Recent economic data sent mixed signals for the economic outlook, which also factors into these forecasts,” the report stated. “On the upside, the labor market posted stronger-than-expected job growth with a falling unemployment rate in July. Meanwhile, inflation – as measured by the Consumer Price Index – decelerated in July, which will influence the Federal Reserve’s policy decisions in the months to come. Mortgage rates for prime borrowers remain elevated compared to last year but have recently leveled off. On the downside, real GDP fell by 0.9 percent at annualized rate in Q2—the second consecutive decline this year—driven by contractions in consumer spending and corporate investment.”