Two more years until inventory bounces back, experts say: Massachsuetts Homebuyers Homeownership

 Housing inventory should reach pre-pandemic levels by the end of 2024, according to the results of Zillow’s latest Home Price Expectations Survey. More than one hundred market experts and economists weighed in to predict upcoming home supply trends as well as how that might affect future home values. From a monthly average of 1.6 million units in 2019, inventory fell to roughly one million in 2021 with 2022 numbers sinking even lower.

 But the vast majority Zillow respondents, seventy nine percent in all, expect a return to normalcy before 2025. Thirty eight percent predict inventory levels to hit 1.5 million units monthly by the end of 2024, followed closely by the thirty seven percent who predict that benchmark by the end of 2023. An additional four percent suspect inventory will recover by the end of this year. via Zillow In turn, appreciation is also expected to slow. Home values skyrocketed thirty two percent over the last two years of low inventory, but the average home value growth predicted for 2022 is just nine percent, down significantly from the nineteen percent growth rate seen last year. Looking ahead further, though, respondents were split on price expectations.

 Between now and the end of 2026, respondents forecast a 26.8 percent cumulative rise, on average. via Zillow Another notable takeaway from the survey results is the impending return of the first time homebuyer. As market conditions led to unprecedented pricing, the share of first-time buyers shrunk to thirty seven percent in 2021. But 62.6 percent of the Zillow respondents now predict first time buyers to make up at least forty five percent of total buyers by the start of 2025.

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