Zillow raises home price growth outlook even as sales are set to ‘gradually decline’

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Zillow Group Inc. raised on Friday its outlook for home price growth over the next year, as sales and prices have stayed strong through the summer given increasingly short inventory and continued strong demand. The online real estate services company said it expects adjusted home prices to increase 1.2% from August to November. From August 2020 to August 2021, Zillow now expects adjusted home prices to rise 4.8%, up from a previous forecast of a 3.8% increase. The raised price outlook comes despite expectations for adjusted home sales to peak this fall and “gradually decline” through 2021, although sales volumes overall are expected to remain above pre-pandemic levels throughout this year and next. Zillow’s Class C shares, which were little changed in premarket trading, have more than doubled (up 112.9%) year to date, while the S&P 500 has inched up 0.5%.
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