Home prices across the U.S. are still seeing record growth, but as the Federal Reserve cracks down on its aggressive approach to tame inflation, 60% of housing experts polled by Zillow don’t believe the housing market is in a bubble. The majority of panelists believe that the worst inflation could already be behind us, while 45% are anticipating a recession in 2023.
Most experts dispute claims of a housing bubble due to strong demographics in the housing market, low credit risk, and scarce inventory keeping buyer demand high. April marked the 13th consecutive month of record-breaking annual home value appreciation, but as affordability is pushed further out of reach amid soaring interest rates, experts believe that demand could soften and prices may soon fall.
Although home prices continue to break growth records, a panel of housing experts and economists surveyed by Zillow does not believe the market is in a bubble. The latest Zillow Home Price Expectations survey polled more than 100 experts from academia, government and the private sector to gather their opinions on the state of the housing market and future growth, inflation forecasts and recession risks.
Of those surveyed, 60% said they did not believe the U.S. housing market is currently in a bubble, compared to 32% who think we are in a bubble, and 8% who are not sure.
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