Zillow: Housing Market will Bottom this Year

MarketWatch reports the value of U.S. homes rose 0.5 percent Feb. to March 2012, marking the largest increase since 2006 when home values also rose 0.5 percent, according to the Zillow Home Value Index (ZHVI). However, the Zillow Home Value Forecast predicts home values will fall nationally 0.4 percent during the next 12 months, although most markets may see a bottoming out by the end of 2012. The Forecast also notes several metro markets will see increases in home values: Phoenix will rise 6.5 percent, Miami-Fort Lauderdale up 5.6 percent, and Tampa is expected to rise 2.5 percent. Metro areas expected to see further declines include a 4.1 percent decrease in Atlanta, and in Chicago where home values are expected to fall 3.8 percent. The Zillow Home Value forecast weighs unemployment, months of housing inventory supply, and home sales to determine its predictions. Zillow’s Chief Economist, Dr. Stan Humphries, while noting national home values are not expected to increase 0.5 percent through the spring buying season and into the summer, says, “… it is undeniable that we are seeing sparks of life in the housing market.”

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