What Are the Experts Saying About Future Home Prices? | Keeping Current Matters

A worldwide pandemic and an economic recession have had a tremendous effect on the nation. The uncertainty brought about by both has made predicting consumer behavior nearly impossible. For that reason, forecasting home prices has become extremely difficult.

Normally, there’s a simple formula to determine the future price of any item: calculate the supply of that item in ratio to the demand for that item. In housing right now, demand far exceeds supply. Mortgage applications to buy a home just rose to the highest level in 11 years while inventory of homes for sale is at (or near) an all-time low. That would usually indicate strong appreciation for home values as we move throughout the year.

Some experts, however, are not convinced the current rush of purchasers is sustainable. Ralph McLaughlin, Chief Economist at Haus, explained in their June 2020 Hausing Market Forecast why there is concern:

“The upswing that we’ll see this summer is a result of pent-up demand from homebuyers and supply-in-progress from homebuilders that has simply been pushed off a few months. However, after this pent-up demand goes away, the true economic scarring due to the pandemic will begin to affect the housing market as the tide of pent-up demand goes out.”

The virus and other challenges currently impacting the industry have created a wide range of thoughts regarding the future of home prices. Here’s a list of analysts and their projections, from the lowest depreciation to the highest appreciation:

We can garner two important points from this list:

  1. There is no real consensus among the experts.
  2. No one projects prices to crash like they did in 2008.

Bottom Line

Whether you’re thinking of buying a home or selling your house, know that home prices will not change dramatically this year, even with all of the uncertainty we’ve faced in 2020.

New Listing - 5 days online
$499,950
Townhouse For Sale
Active
2
BEDS
2
TOTAL BATHS
1,310
SQFT
1225 4th Ave #108
Nashville, TN 37210
Woodstock Subdivision
New Listing - a week online
$305,000
Townhouse For Sale
Pending
1
BED
1
TOTAL BATH
611
SQFT
1245 4th Ave
Nashville, TN 37210
Woodstock Subdivision
New Listing - 2 weeks online
$552,500
Townhouse For Sale
Pending
2
BEDS
2
TOTAL BATHS
1,203
SQFT
1030 9th Ave
Nashville, TN 37208
Row 8 9 Condominiums Subdivision
New Listing - 2 weeks online
$499,900
Townhouse For Sale
Active Under Contract
2
BEDS
2
TOTAL BATHS
1,318
SQFT
1225 4th Ave #201
Nashville, TN 37210
Woodstock Subdivision
New Listing - 2 weeks online
$880,000
Townhouse For Sale
Active Under Contract
3
BEDS
4
TOTAL BATHS
1,935
SQFT
1203 10th Ave
Nashville, TN 37208
Ludlow Row On 10th Subdivision
New Listing - 3 weeks online
$1,399,000
Townhouse For Sale
Active
3
BEDS
4
TOTAL BATHS
2,469
SQFT
800 13th Ave
Nashville, TN 37203
Element Gulch Subdivision
$749,999
Townhouse For Sale
Pending
2
BEDS
2
TOTAL BATHS
1,450
SQFT
1223 4th Ave
Nashville, TN 37208
4th Monroe Subdivision
$750,000
Townhouse For Sale
Active
2
BEDS
2
TOTAL BATHS
1,114
SQFT
500 Madison St #107
Nashville, TN 37208
Summer Street Lofts Subdivision
$555,000
Townhouse For Sale
Active Under Contract
1
BED
2
TOTAL BATHS
1,326
SQFT
508 Hume St
Nashville, TN 37208
6th Hume Street Subdivision
$999,900
Townhouse For Sale
Pending
3
BEDS
4
TOTAL BATHS
2,729
SQFT
620 Madison Street
Nashville, TN 37208
Germantown Elliott Subdivision