According to the Zillow Home Price Expectations Survey, more than 100 economists, investment strategists and real estate experts were asked for their predictions about the U.S. housing market. The Q4 survey also asked panelists to rate their 2020 expectations for home value growth compared to the nation in 25 large markets.
On average, panelists said they expected U.S. home values to grow by 2.8% in 2020. The share of panelists saying they expected a market to outperform that average was weighed against the share saying they expected it to underperform to create a net score.
The Hottest Markets in 2020
Austin is the most likely to see home value growth above that expected average this year according to the panelists, earning a score of 76. A whopping 83% of respondents said they expect the Austin market to outperform the U.S., with only 7% saying it will underperform. Southern markets Charlotte, Atlanta and Nashville were standouts as well, with scores of 59, 51 and 49, respectively. Charlotte was the only market among the 25 analyzed in which none of the panelists said it would underperform.
Of the 14 markets with positive scores, 11 come from Texas or elsewhere in the Southeast or Southwest. The exceptions are Denver, Minneapolis and Portland. Seattle was the most polarizing market, with an even 40% of panelists each expecting it to overperform and underperform.
The Coolest Markets in 2020
Of the 10 markets that earned negative scores, meaning more panelists expected them to underperform than overperform, six were in California. A group of expensive markets in the state — San Francisco, San Jose and Los Angeles — are expected to perform the worst. Cincinnati and Sacramento round out the bottom five.
National Housing Outlook for 2020