Zillow: Bulk home sales will boost housing
Economists predict smoother market conditions ahead
The Zillow Home Price Expectations Survey, a pool of opinion from 110 economists, predicts housing market demand will gently ease through the next few years.
The influx of supply will come as large-scale investors sell off the homes in their portfolios.
This may come as good news to the mom-and-pop shops looking to get back into single-family rentals.
More importantly, it may create better conditions for first-time homebuyers.
“Buyers entering the market in the next few months will not be competing with cash-rich investors like they were last year which should be some small solace given the higher prices and mortgage rates that they will encounter," said Zillow Chief Economist Dr. Stan Humphries.
"The gradual decline of investor activity should be viewed as another sign of the market slowly returning to normal, and I agree with the panel’s expectations that there will not be a rush for the exit by institutional investors," he added.
The panelists expect prices to continue to rise, up to 4.5% this year, and then slowly ease down through 2018.
Panelists were also asked their opinion on the Federal Reserve taper and answered that they expect it to finish within the year.
Pulsenomics helped put together the report. Founder Terry Loebs added: "Whether Janet Yellen’s Fed will maintain the current pace as new economic challenges arise remains an open question.”