Zillow analyst on whether home prices can keep climbing
Today’s episode of HousingWire Daily features an interview with Nicole Bachaud, an economic data analyst on Zillow’s economic research team. Bachaud discusses data from Zillow’s August 2021 market report, which looked at the housing market and the appreciation of home prices.
Bachaud also talks about annual and monthly home price appreciation growth, rising inventory levels, and rent prices. Additionally, she shares advice for prospective homebuyers that are considering entering the market in the next few months.
Here is a small preview of the interview, which has been lightly edited for length and clarity:
Elissa Branch: Even though August numbers are a little bit lower than July, it’s still the third highest we’ve seen. Looking at annual growth, annual US home value appreciation is still up 17.7% year-over-year. Do you think the numbers from the August market report are indicative of a slowdown in the market? Or did they represent more of the typical seasonal changes we see for this time of year?
Nicole Bachaud: The August appreciation value at 17.7% is the highest we’ve ever seen, so I am cautious to say it’s showing a slowdown. We’re just seeing signs that moderation is coming in the next months and throughout the next year. We’re still expecting in August 2022 to see somewhere around 11 or 12% annual appreciation. It’s still going to be a really fast housing market as we’re beginning to see gradual pullback toward normal levels.
We are also starting to see signs of a new seasonality as the market cools off in the fall. We’re expecting it to somewhat have a typical seasonality change, but it will be at a much lesser degree. I believe we’re still going to have a tight market in terms of inventory and we’re still going to see prices increasing at rapid rates. It’s still going to be a tight market, it’s just maybe going to be a bit more beneficial for buyers than the spring and summer.
HousingWire Daily examines the most compelling articles reported across HW Media. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsrooms that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Elissa Branch. If you have a pitch or an inquiry relating to podcasts, you can reach our team at email@example.com.
Below is the transcription of the interview. These transcriptions, powered by Speechpad, have been lightly edited and may contain small errors from reproduction: