Zillow Stock Up, Predicts That Home Prices Will Decline in 259 Housing Markets and Increase in 616
Zillow stock (NASDAQ:ZG) price was trading at $36.28 (+0.31) (0.86%) on Thursday afternoon.
The Coming [Housing] Collapse Is Already Here, a New York Times article from 1981, was published. The articles central thesis was that the nations housing bubble was set to burst as a result of the Federal Reserves battle against inflation, which drove mortgage rates to an all-time high of 18%. In the end, despite the fact that home sales and building levels fell, the anticipated housing catastrophe of the 1980s didnt materialize.
Lets fast-forward to 2022 when people are once again speculating about the possibility of a housing crisis due to the Feds continued battle against inflation. Similar to 1981, the U.S. home industry is currently experiencing a significant slowdown due to skyrocketing mortgage rates. Sales of new homes and existing homes are down 20, 2, and 29, 6 percent annually, respectively.
Zillow Is Almost Done Selling Properties but the Hard Part Is Yet to Come
Analysts have revised downward their 2023 home price projections as a result of the abrupt decline in the U.S. housing market, which the National Association of Home Builders and National Association of Realtors refer to as a housing recession. However, no research company has yet to forecast a national housing crisis, which, according to insiders in the sector, would require a peak-to-trough loss of more than 20%.
Zillow updated its 12-month outlook this week and now anticipates a 1.4% increase in U.S. house values. This is lower than the 7.8% it predicted back in July as well as the 2.4% it predicted a month earlier. Zillow (NASDAQ:ZG) anticipates a 1.4% decline in national home price increases, although market-specific variations will be substantial. Lets look more closely.
Research analysts optimistic about Zillow stock
According to a prediction made by Zillow (NASDAQ:ZG) analysts back in July, only five regional property markets were expected to experience declining home values in the upcoming year. The number was then reduced by Zillow economists to 123 regional markets in August.
The projection was revised by Zillow (NASDAQ:ZG) economists this past week. They now forecast that between August 2022 and August 2023, home values are anticipated to decline in 259 of the countrys 896 regional housing markets. Four of the markets are anticipated to experience home value decreases of more than 5%. This list includes Mount Gay, West Virginia (-5.1%), Lake Charles, Louisiana (-6.1%), Minot, North Dakota (-6.0%), and Fairbanks (-7% anticipated drop).
MarketBeat regularly monitors the stocks that Wall Streets top-rated and most successful research analysts advise their customers to buy. Zillow stock (NASDAQ:ZG) wasnt included in MarketBeats list of the five stocks that top analysts are privately advising their customers to purchase right away before the wider market catches on. Analysts currently rate Zillow stock (NASDAQ:ZG) as a Hold, but the top-rated analysts think these five companies are better buys.
Featured Image- Megapixl @ Rafaelhenriquepress
Author: Jowi Kwasu
Market Jar Media Inc.
#170 – 422 Richards Street
Vancouver, BC, Canada
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No News Postbox journalist was involved in the writing and production of this article.