Zillow’s economists have released their 2015 predictions for the nation’s real estate market. If correct, expect home value appreciation to cool off considerably — Zillow is predicting only a 2.5 percent increase in home values nationwide for 2015. Also, expect to see a lot more Millennials shopping for homes.
Zillow’s predictions for 2015:
- U.S. rents will outpace home values by the end of the year
- Builders will begin constructing more, less expensive homes
- Millennials will overtake Generation X as the largest group of homebuyers
- Homebuyers will have more negotiating power in 2015
According to the report, home value appreciation should drop from the ~6 percent now to around 2.5 percent by the end of 2015. These figures are for the country as a whole. If we apply a similar relative drop in home value appreciation to the Reno-Sparks market, then the price appreciation rate should drop from the ~13.4 percent now to ~7.8 percent by the end of 2015 for the area.