Zillow April 2021-April 2022 Home Value & Sales Forecast
Zillow economists expect another year of rapid home value appreciation ahead of us, forecasting 11.8% growth through April 2022. Existing home sales in 2021 are predicted to be 10.3% higher than in 2020.
Annual home value growth is expected to end 2021 up 13.9% from 2021 (December 2020-December 2021). Recent rapid home value growth — monthly ZHVI appreciation has set new records in each of the past six months — has pushed our expectation for future growth higher over the past month. In our March report, our expectation was for 10.4% appreciation by March 2022.
On the sales side, our forecast has been revised down somewhat, though we still expect double-digit growth in sales in 2021 compared to 2020. In March, Zillow expected a total of 6.41 million existing home sales in 2021, slightly more than the 6.23 million sales currently forecast for this year. Mounting affordability concerns contributed to the slightly lower outlook, outweighing recent improvements in pending sales and mortgage application activity.
That said, enduring demographic tailwinds from the aging millennial and Gen Z generations, historically low mortgage interest rates and an improving economy should continue to support increased sales volume in coming months.
Our full suite of 1-year home value forecasts for the nation, select metros and ZIP codes can be found here.
