On June 16, 2023, the Zillow Q2 2023 Home Price Expectations Survey results were released. This survey is done on a quarterly basis.
Various Q2 2023 Zillow Home Price Expectations Survey charts are available, including that seen below:
As one can see from the above chart, the average expectation is that the residential real estate market, as depicted by the U.S. Zillow Home Value Index, will (largely) continually climb.
The detail of the Q2 2023 Home Price Expectations Survey is interesting. Of the 100+ survey respondents, only 6 (of the displayed responses) forecasts a cumulative price decrease through 2027.
The Median Cumulative Home Price Appreciation for years 2023-2027 is seen as 0.0%, .76%, 3.66%, 7.08%, and 11.30%, respectively.
For a variety of reasons, I continue to believe that these forecasts will prove far too optimistic in hindsight.
I have written extensively about the residential real estate situation. For a variety of reasons, it is exceedingly complex. While many people continue to have an optimistic view regarding future residential real estate prices, in my opinion such a view is unsupported on an “all things considered” basis. Residential real estate is an exceedingly large asset bubble. As such, from these price levels there exists potential for a price decline of outsized magnitude.
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The Special Note summarizes my overall thoughts about our economic situation
SPX at 4409.59 as this post is written
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