Following their February call that U.S. home prices had hit bottom, Zillow economists proceeded to raise their home price forecast every single month through August. At that point, Zillow predicted that U.S. home prices would climb 6.5% over the next 12 months, which is just above the 5.5% annual increase that national home prices, as tracked by Case-Shiller, have averaged since 1975.
However, this week, Zillow economists issued a downward revision and predicted that U.S. home prices would instead rise 4.9% between August 2023 and August 2024.
