Skip to main content

Housing Experts Feel Strong Housing Market Rebound Around the Corner

Sep 20, 2012

Economists expect home prices to rise by a total 2.3 percent during 2012, and overall have become more bullish on home prices than they were in the second quarter, according to the September 2012 Zillow Home Price Expectations Survey, compiled from 113 responses from a diverse group of economists, real estate experts and investment and market strategists. The survey, sponsored by Zillow Inc. and conducted by Pulsenomics LLC, is based on the projected path of the S&P/Case-Shiller U.S. National Home Price Index during the coming five years. Survey respondents expect home prices to increase in full-year 2012 by 2.3 percent, up from their forecast of -0.4 percent in the June 2012 survey. Respondents have also revised their forecasts for 2013-2016, predicting steadily increasing home values in each year. "This is further evidence that we're seeing a true recovery in the housing market," said Zillow Chief Economist Dr. Stan Humphries. "Not since mid-2010, in the midst of the homebuyer tax credits, have we seen this group so bullish on housing. It's refreshing to see this optimism at a time when the market seems to be making an organic recovery, in the absence of an artificial stimulant like the tax credits." The most optimistic quartile of panelists predicts a 4.4 percent increase in 2012, on average, while the most pessimistic predict an average increase of 0.3 percent. Additionally, respondents overwhelmingly favor changes to the mortgage interest deduction. Ten percent believe it should be eliminated as soon as possible; 50 percent believe it should be eliminated, but phased out gradually; and 30 percent believe it should remain, but that more restrictions should be placed on eligibility. Only 11 percent believe it should remain as-is. "Although the mortgage interest deduction remains enormously popular with existing and aspiring homeowners, it costs the federal government about $90 billion a year," said Pulsenomics LLC Founder Terry Loebs. "Time will tell whether the unprecedented fiscal challenges facing the U.S. coupled with a housing market now on the mend will embolden more policymakers to touch this lightning rod." The panel also weighed in on expectations for the housing policies of the presidential candidates and the exercise of eminent domain to seize mortgages secured by underwater homes. Responses are below.  
About the author
Published
Sep 20, 2012
President Trump ‘Giving Very Serious Consideration’ To Re-Privatizing Fannie And Freddie

President indicates the time ‘would seem to be right,’ says he’ll make a decision ‘in the near future’

NAMB Applauds House Passage of VA Home Loan Reform Bill

Legislation is 'a critical step' toward housing stability for veterans, group says

May 21, 2025
MaxClass, OCN In ‘NMLS Fest’ Joint Venture

Format merges live continuing education with business-building interactions with vendors

May 21, 2025
Mortgage Applications Drop As Rates Reach Three-Month High Point

Purchase apps still 13% higher than a year ago, despite latest weekly slide

May 21, 2025
Moody’s Downgrades Fannie And Freddie Following U.S. Sovereign Credit Cut

Outlooks for both GSEs revised from negative to stable

May 20, 2025
A&D Mortgage Completes $427M Non-QM Securitization

Company says transaction highlights expansion in the Non-QM market, notes it expects to price more deals this year

May 19, 2025