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This week, Zillow economists introduced they count on U.S. house costs, as measured by the Zillow Home Value Index, to rise 2.9% between October 2024 and October 2025.
“That is an upward revision to our outlook from final month. Opposing forces are working to maintain house values climbing, however solely at a modest tempo. Stock stays very low by historic requirements, which, paired with expectations for declining mortgage charges and modest enhancements in different main indicators of house gross sales, helps to buoy house worth appreciation,” wrote Zillow economists. “On the similar time, modest will increase in new for-sale listings and persistently excessive mortgage charges are combining to restrict value progress.”
Whereas Zillow economists predict a 2.9% improve in nationwide house costs over the subsequent 12 months, they solely count on “a gradual improve in current house gross sales within the coming 12 months, with an estimated 4.3 million gross sales in 2025, up barely from the 4.1 million transactions recorded in 2023 and 4 million projected for 2024.”
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Among the many 400 largest U.S. housing markets, Zillow expects the strongest house value appreciation between October 2024 and October 2025 to happen in these 10 areas.
- Atlantic Metropolis, NJ: +6.5%
- Kingston, NY: +6.1%
- Augusta, ME: +6.1%
- Pottsville, PA: +5.9%
- Knoxville, TN: +5.8%
- Vineland, NJ: +5.7%
- Lewiston, ME: +5.7%
- Harmony, NH: +5.6%
- Bangor, ME: +5.3%
- Muncie, IN: +5.3%
In the meantime, Zillow expects the weakest house value appreciation between October 2024 and October 2025 to happen in these 10 housing markets.
- Lake Charles, LA: -7.8%
- Houma, LA: -5.8%
- Lafayette, LA: -4.0%
- Johnstown, PA: -3.9%
- New Orleans, LA: -3.8%
- Eureka, CA: -3.4%
- Beaumont, TX: -3.1%
- Odessa, TX: -3.0%
- Shreveport, LA: -2.9%
- Hammond, LA: -2.9%
Whereas Zillow expects house costs in Florida to rise over the approaching 12 months, some housing analysts stay skeptical. In spite of everything, Florida has skilled a big improve in energetic stock and months of provide this 12 months, which may sign potential pricing weak point. Certainly, condo prices are currently declining in most Florida housing markets. And a few Southwest markets, comparable to Punta Gorda and Cape Coral, are additionally seeing outright declines in single-family house costs.