Zillow downgrades its home price forecast. Here’s its outlook for 400-plus housing markets

Zillow has revised its 12-month forecast, now predicting a slight decline of -0.2% in U.S. home prices from May 2026 to May 2027, marking a shift from earlier projections of a modest increase. This downgrade reflects growing concerns over the impact of higher interest rates on the housing market. The implications are significant, as it suggests potential cooling in the housing market that could influence mortgage rates, consumer spending, and overall economic growth. This change underscores the ongoing uncertainty and challenges facing the real estate sector.