Home prices soared 40% during the pandemic—but Zillow sees them rising less than 2% this year

Key Facts

First American, yesterday, released its home price index report that found “house prices nationally are now 52% higher compared to pre-pandemic levels,” having increased more than 6% in the last year.
Still, before the pandemic, it was normal for home prices to appreciate around either 5% or 6% each year, Redfin’s chief economist Daryl Fairweather, recently said.
“Persistent inflation has diminished any optimism that the Federal Reserve may start to cut rates in June, meaning mortgage rates seem more and more likely to remain ‘higher for longer’ this year,” First American’s chief economist, Mark Fleming, said in an analysis accompanying its home price index.
For its part, Zillow said, “it remains to be seen how new listings will fare in April—the Easter holiday falling in March and the fact that February was a leap year are likely clouding the broader picture.”