Zillow Chief Economist Dr. Stan Humphries believes that rising mortgage rates, reduced investor demand and slowly rising inventory will all contribute to the slowdown of appreciation. With continued questions about the role of quantitative easing, job growth which has yet to replace the quality of jobs lost in the recession, and fluctuating uncertainty in Europe and China, buyers and seller will remain watchful.
The market is now approaching 2006 values. All in all, the outlook for appreciation is good. The spring market will be very active with the highest concentration of activity in the $500-800 range. The supply of entry-level homes remains tight and loosens as you ascend the price ladder.