Home values expected to fluctuate on local, national scale
Posted on Thursday, January 23, 2014 at 9:17:49 AM
Home values have been up and down over the past few years, and that has caused potential buyers interested in residential financing to keep a watchful eye on any changes.
According to the Zillow Home Value Forecast, home values on a national scale are expected to increase 4.8 percent over the next 12 months. However, this may not be the case in certain local markets, which might lead to some confusion in the housing sector. Zillow predicted drastic shifts in home value appreciation for a number of locations. For example, a 16.1 percent uptick is expected in Riverside, Calif., compared to a 3.1 percent drop in St. Louis.
Even so, Zillow chief economist Stan Humphries said in a statement that more homes are likely to be available this year even while values shift. He added that investor activity could decline, opening up more opportunities for other buyers.
In addition, the recent FNC Residential Price Index demonstrated that U.S. home prices continued to rise in November, up 0.5 percent even with other potential headwinds. The high number of foreclosure sales during the month could have shifted this statistic in a downward direction, but instead the trend was positive.