Zillow, one of the leading authorities in real estate data and analytics, recently released its forecast for September 2023. This forecast comes with some notable changes and insights that are worth exploring.
Zillow’s forecast for the nation’s typical home value has undergone a significant revision this month. The downward adjustment is attributed to an uncharacteristic month-over-month dip in September and the continuous climb of mortgage rates. Let’s delve into the specifics of these revisions.
Previous expectations foresaw a 4.3% growth in the Zillow Home Value Index (ZHVI) for 2023. However, the latest data indicates a downward shift, with ZHVI now expected to grow by 3.3% in 2023. This adjustment has important implications for those involved in the housing market.
Zillow Housing Market Forecast
Looking ahead, Zillow’s projection for the 12-month growth of the ZHVI from September 2023 through September 2024 has also been revised. Last month, it was predicted to rise by 4.9%, but the new forecast suggests a more modest 2.1% increase. These figures reflect the market’s sensitivity to various factors, particularly the impact of mortgage rates.
Existing Home Sales and Inventory Projections
Aside from home values, Zillow also provides insights into existing home sales and inventory levels for the year 2023. These factors play a pivotal role in shaping the real estate landscape.
Zillow’s projection for existing home sales in 2023 remains steady at 4.1 million. While this number seems substantial, it represents an 18% decline from the previous year (2022). This decline underscores the challenges faced by the housing market and the impact of current economic conditions.
For-sale inventory is expected to stay near today’s historically low levels. This situation has a twofold effect. It limits potential sales opportunities for homeowners looking to sell, while simultaneously maintaining upward pressure on home values. The low inventory is a reflection of the delicate balance in today’s housing market.
The Impact of Mortgage Rates
The surge in mortgage rates has significantly influenced the housing market. “Rate-locked” homeowners are choosing to hold onto their properties, primarily due to the relatively low monthly payments associated with their current homes. This trend has far-reaching implications, affecting both sellers and potential buyers in the real estate market.
Overall, Zillow’s Home Value Forecast for September 2023 paints a picture of a real estate market in flux. With revised projections, declining existing home sales, and persistently low inventory levels, the housing landscape remains challenging for all stakeholders. The influence of elevated mortgage rates further complicates the situation. Keeping a watchful eye on these trends is essential for anyone navigating the dynamic world of real estate.
Top 10 Zip Codes Where Home Prices Will Rise in 2024
These top 10 zip codes represent excellent investment opportunities for those looking to capitalize on the growing real estate market in 2024. Keep an eye on these areas for potentially lucrative real estate investments.
1. Yatesville, GA – Zip Code 31097
In Yatesville, Georgia, zip code 31097, home prices are expected to experience significant growth in 2024. As of 31st October 2023, the median home price has increased by 1.6%. By the end of 2023, it is projected to rise to 3.2%, and by 30th September 2024, it is anticipated to surge by an impressive 8.8%.
2. Clewiston, FL – Zip Code 33440
Clewiston, Florida’s zip code 33440 is another area where home prices are on the rise. On 31st October 2023, the median home price increased by 1.1%, and by the end of 2023, it is projected to rise to 2.5%. By 30th September 2024, the home prices are expected to experience a substantial increase of 8.6%.
3. Alta, WY – Zip Code 83414
Alta, Wyoming, in zip code 83414, is poised for a significant surge in home prices. As of 31st October 2023, the median home price has already increased by 2.5%. By the end of 2023, it is expected to rise to 4.1%, and by 30th September 2024, it is anticipated to increase by 8.6%.
4. Felda, FL – Zip Code 33930
Felda, Florida, in zip code 33930, is another area where home prices are on the rise. On 31st October 2023, the median home price increased by 1.2%, and by the end of 2023, it is projected to rise to 2.9%. By 30th September 2024, the home prices are expected to experience a substantial increase of 8.6%.
5. Thomaston, GA – Zip Code 30286
Thomaston, Georgia, in zip code 30286, is experiencing steady growth in home prices. As of 31st October 2023, the median home price increased by 0.4%. By the end of 2023, it is projected to rise to 1.5%. By 30th September 2024, the home prices are expected to increase by 8.3%.
6. Wilson, WY – Zip Code 83014
Wilson, Wyoming, in zip code 83014, is another area to watch for increasing home prices. On 31st October 2023, the median home price has already increased by 1.7%. By the end of 2023, it is projected to rise to 2.8%. By 30th September 2024, the home prices are expected to increase by 8%.
7. Jellico, TN – Zip Code 37762
Jellico, Tennessee, in zip code 37762, is also expected to see rising home prices. As of 31st October 2023, the median home price has increased by 2.3%. By the end of 2023, it is projected to rise to 3.4%. By 30th September 2024, the home prices are expected to increase by 7.8%.
8. Jackson, WY – Zip Code 83001
Jackson, Wyoming, in zip code 83001, is another location where home prices are on the rise. On 31st October 2023, the median home price increased by 1.5%, and by the end of 2023, it is projected to rise to 2.5%. By 30th September 2024, the home prices are expected to increase by 7.7%.
9. The Rock, GA – Zip Code 30285
In The Rock, Georgia, zip code 30285, home prices are showing promise in 2024. As of 30th September 2023, the median home price has increased by 0.9%. By the end of 2023, it is projected to rise to 2.5%. By 30th September 2024, the home prices are expected to grow by 7.4%.
10. Wilson, WY – Zip Code 83025
Wilson, Wyoming, in zip code 83025, is the tenth area on our list where home prices are expected to rise. On 30th September 2023, the median home price increased by 0.8%, and by the end of 2023, it is projected to rise to 1.3%. By 30th September 2024, the home prices are expected to experience an increase of 7.4%.
Top 10 Zip Codes Where Home Prices Will Drop in 2024
These zip codes represent areas where home prices are expected to decline in 2024. It’s essential for potential buyers and investors to consider these projections when making real estate decisions in these locations.
1. Tatum, NM – Zip Code 88267
In Tatum, New Mexico, zip code 88267, home prices are expected to decrease significantly in 2024. As of 30th September 2023, the median home price has dropped by -4.7%. By the end of 2023, it is projected to decrease further to -9%. By 30th September 2024, the home prices are anticipated to fall by -12.4%.
2. Greenville, MS – Zip Code 38722
Greenville, Mississippi, in zip code 38722, is another area where home prices are on the decline. On 30th September 2023, the median home price decreased by -0.2%, and by the end of 2023, it is projected to decrease to -1.8%. By 30th September 2024, the home prices are expected to drop significantly by -12.2%.
3. Marvell, AR – Zip Code 72366
Marvell, Arkansas, in zip code 72366, is also expected to see a significant decrease in home prices. As of 30th September 2023, the median home price has dropped by -2.5%. By the end of 2023, it is projected to decrease to -5.7%. By 30th September 2024, the home prices are anticipated to fall by -12%.
4. Jal, NM – Zip Code 88252
Jal, New Mexico, in zip code 88252, is another location where home prices are expected to decline. On 30th September 2023, the median home price decreased by -3%, and by the end of 2023, it is projected to decrease to -6.5%. By 30th September 2024, the home prices are expected to drop by -11.9%.
5. Starks, LA – Zip Code 70661
Starks, Louisiana, in zip code 70661, is also facing a decline in home prices. On 30th September 2023, the median home price has dropped by -2.4%, and by the end of 2023, it is projected to decrease to -5.5%. By 30th September 2024, the home prices are anticipated to fall by -11.9%.
6. Vinton, LA – Zip Code 70668
Vinton, Louisiana, in zip code 70668, is another area where home prices are on the decline. On 30th September 2023, the median home price decreased by -2%, and by the end of 2023, it is projected to decrease to -4.3%. By 30th September 2024, the home prices are expected to drop by -11.7%.
7. Poplar Grove, AR – Zip Code 72374
Poplar Grove, Arkansas, in zip code 72374, is facing a decline in home prices. As of 30th September 2023, the median home price has dropped by -1.8%. By the end of 2023, it is projected to decrease to -4.4%. By 30th September 2024, the home prices are anticipated to fall by -11.4%.
8. Lexa, AR – Zip Code 72355
Lexa, Arkansas, in zip code 72355, is another location where home prices are expected to decline. On 30th September 2023, the median home price decreased by -1.2%, and by the end of 2023, it is projected to decrease to -3.5%. By 30th September 2024, the home prices are expected to drop by -11.2%.
9. Lake Charles, LA – Zip Code 70601
Lake Charles, Louisiana, in zip code 70601, is also expected to see a decrease in home prices. On 30th September 2023, the median home price has dropped by -2.4%, and by the end of 2023, it is projected to decrease to -4.7%. By 30th September 2024, the home prices are anticipated to fall by -10.7%.
10. Dequincy, LA – Zip Code 70633
Dequincy, Louisiana, in zip code 70633, is another area on our list where home prices are expected to decline. As of 30th September 2023, the median home price decreased by -1.7%, and by the end of 2023, it is projected to decrease to -3.8%. By 30th September 2024, the home prices are expected to drop by -10.7%.
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