【World Property Journal】U.S. Home Prices Predicted to Dip in Second Half of 2020

Based on Zillow's latest May 2020 Real Estate Market Report, U.S. home values may decline in the second half of the year.

According to the Zillow Home Value Index, the typical home value in the U.S. is $251,598, up 4.3% year over year -- a small acceleration from April's 4.2% year over year. But by more recent measures the growth rate has begun to slow.
In April 2020, home values grew 0.41% month over month. In May, that slowed to 0.35%, the biggest one-month slowdown since March 2019 and a possible indicator that the market is headed for home value declines in the coming months. The most recent forecast from Zillow's economic research team shows an expected 1.8% drop in prices through October 2020 from the highs in February, with a slow price recovery by mid-spring in 2021. The year-over-year change is forecasted to bottom out at -0.7%.

May's home value growth slowdown was widespread, hitting 27 of the 35 largest U.S. metros. Home value growth slowed the most over April in a mix of the most expensive areas (San Francisco, San Jose, Los Angeles and Seattle), what had been the hottest markets (Phoenix, Columbus and Indianapolis) and metros in states with a relatively high number of COVID-19 cases (Detroit and Pittsburgh).

Home values outright fell from April to May in five metros -- San Francisco, San Jose, Pittsburgh, Los Angeles and Sacramento.

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