Zillow Housing Forecast & Buyer Demand Crisis – SummaryPending Sales & Buyer Demand PlungePending home sales fell 0.4% in July (per NAR), and 15% of contracts were canceled (per Redfin).Only 16% of realtors expect buyer traffic to improve. Buyer demand is at record lows. Zillow’s Revised Forecast National forecast shifted from predicting declines to slight growth (+0.4% by July 2026). Despite optimism nationally, Zillow projects sharp local declines in cities like San Francisco (–4%), Austin (–3.5%), Sacramento, Denver, Honolulu, Portland, and parts of Florida. Local Price Declines Already Severe Example: Venice, Florida home lost 31% value in 3 years, selling for $585K after being purchased for $840K. Significant individual listing declines are emerging in oversupplied areas. Demand Problem, Not Rates Pending home sales index sits at 72 vs. 106 pre-pandemic (–32%) and lower than 2008 crash levels. Despite Fed rate cuts in 2023–24, demand worsened, showing high prices—not mortgage rates—are the key issue. Record High Real Home Prices Inflation-adjusted prices are the highest in U.S. history, even above 2006 peak. Mortgage rates (~6.7%) are historically normal, proving affordability is broken due to inflated prices. Florida Market Hit Hard Home values down 5% statewide in a year, with some zip codes in St. Petersburg down 12–17%. Florida leads the nation in July 2025 monthly declines. Wider U.S. Weakness Emerging 14 states + D.C. show year-over-year declines, including AZ, HI, TX, GA, CO, CA, NC, SC, OR, TN. 27 states report month-over-month declines by mid-2025. Northeast & Midwest Resilience States like New York (+4.4%), Illinois (+3.5%), and Wyoming (+5.2%) are still appreciating. Zillow forecasts strongest growth in markets like New Haven (CT), Hartford (CT), Syracuse (NY), and Reading (PA). Sellers Still Unrealistic Many list homes far above recent purchase prices or market trends, leading to stagnation and long days on market. Example: Florida sellers listing at +56% profit in declining areas. Local Forecasts Critical for Buyers & Realtors Forecasts vary sharply even within cities (e.g., Nashville downtown –10% vs. wealthy suburbs –1.7%). Buyers should use forecasts to negotiate; realtors can leverage them to guide sellers to realistic pricing.

Zillow’s Housing Forecast Dramatically Shifted Downward.

Posted on By realejuicey

 Zillow Housing Forecast & Buyer Demand Crisis – SummaryPending Sales & Buyer Demand PlungePending home sales fell 0.4% in July (per NAR), and 15% of contracts were canceled (per Redfin).Only 16% of realtors expect buyer traffic to improve. Buyer demand is at record lows.Zillow’s Revised ForecastNational forecast shifted from predicting declines to slight growth (+0.4% by July 2026).Despite optimism nationally, Zillow projects sharp local declines in cities like San Francisco (–4%), Austin (–3.5%), Sacramento, Denver, Honolulu, Portland, and parts of Florida. Local Price Declines Already Severe Example: Venice, Florida home lost 31% value in 3 years, selling for $585K after being purchased for $840K. Significant individual listing declines are emerging in oversupplied areas. Demand Problem, Not Rates Pending home sales index sits at 72 vs. 106 pre-pandemic (–32%) and lower than 2008 crash levels. Despite Fed rate cuts in 2023–24, demand worsened, showing high prices—not mortgage rates—are the key150