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Zillow Predicts First Home Price Drop Since 2011

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Seattle, Washington, USA

May 21, 2025 0 Neutral I want home/real estate tips

Seattle, Washington, USA: Real estate giant Zillow projects a 0.9% nationwide home price decline by April 2026—the first annual drop in over a decade. Rising mortgage rates and increased listing activity are softening demand. Zillow notes some areas could see sharper dips (5%+) while select Northeastern markets remain steady or gain slightly. Although not a crash, the forecast signals a cooldown from the pandemic boom.

What this means for you:

•	If you’ve been waiting to buy, a slight price dip could open opportunities
•	Sellers may need to adjust expectations; consider prepping homes meticulously to stand out
•	Keep an eye on mortgage rates—if they stabilize or decline, this window could shrink
•	Consult local data rather than national averages for a more accurate picture

Key Entities

• Zillow: A U.S.-based real estate platform (founded 2006) providing home listings and market forecasts. Now expects the first annual nationwide price drop since 2011.
• U.S. Housing Market: Has run hot since 2020, but affordability concerns and high mortgage rates are gradually easing demand.
• Skylar Olsen: Chief Economist at Zillow, guiding the company’s analysis and outlook on price trends.
• Home Buyers & Sellers: The primary stakeholders in a potential market correction. A 0.9% drop could create new opportunities or cut into equity.
• Mortgage Rates: Rose sharply from ~3% to ~6%+ since 2022, pricing many buyers out and driving this forecasted dip.

Bias Distribution

Left: 0% (0 sources)

Center: 100% (1 source)

Right: 0% (0 sources)

Multi-Perspective Analysis

Left-Leaning View

(No major coverage).

Centrist View

Focuses on neutral data—affordability and supply.

Right-Leaning View

(No major coverage).

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