In the 10 years since the Great Recession, the housing market has had above-average home value growth. Yet, a new survey of economists and experts anticipates it will take years for home values to reach levels they would have if the housing crisis not occurred.
Based on survey responses from over 100 economists and experts, the general view is that home values could reach the levels they should have if the recession had not happened in the 2020s, and possibly further into the future than that. A more optimistic view says home values will hit those levels by the end of 2019. Respondents said that the new tax reform had them feeling more pessimistic than optimistic about home values over the next five years, per Zillow's survey.
The most optimistic survey respondents said they expect home values to grow at a 5 percent average annual rate over the next five years. The most pessimistic said they expected just 1.6 percent annual growth, on average, through 2022. Among all respondents, the average expected annual growth rate over the next five years was 3.4 percent, slightly below pre-recession norms.
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