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 - 16 hours online
$1,695,000
Townhouse For Sale
Active
5
BEDS
5
TOTAL BATHS
3,499
SQFT
1236 5th Ave
Nashville, TN 37208
Luxus Germantown Subdivision
New Listing - yesterday
$559,900
Townhouse For Sale
Active
3
BEDS
3
TOTAL BATHS
1,481
SQFT
523 Garfield St
Nashville, TN 37208
Germantown/Salemtown Subdivision
New Listing - 3 weeks online
$675,000
Townhouse For Sale
Active Under Contract
3
BEDS
3
TOTAL BATHS
1,690
SQFT
310 Taylor St
Nashville, TN 37208
Germantown Subdivision
New Listing - 3 weeks online
$625,000
Townhouse For Sale
Active
3
BEDS
4
TOTAL BATHS
1,950
SQFT
1411b Meharry Blvd
Nashville, TN 37208
Boulevard Townhomes Subdivision
New Listing - 3 weeks online
$560,000
Townhouse For Sale
Pending
2
BEDS
2
TOTAL BATHS
1,119
SQFT
1211b 5th Ave
Nashville, TN 37208
Germantown Court Subdivision
New Listing - 3 weeks online
$339,500
Townhouse For Sale
Active
1
BED
1
TOTAL BATH
580
SQFT
419 Van Buren St
Nashville, TN 37208
D T Mcgavock Homeowners Subdivision
$593,000
Townhouse For Sale
Active Under Contract
3
BEDS
4
TOTAL BATHS
1,940
SQFT
1213 10th Ave #11
Nashville, TN 37208
Ludlow Row On 10th Subdivision
$439,900
Townhouse For Sale
Pending
2
BEDS
3
TOTAL BATHS
1,430
SQFT
807 18th Ave #101
Nashville, TN 37203
807 Eighteenth Ave Subdivision
$849,900
Townhouse For Sale
Active
3
BEDS
3
TOTAL BATHS
2,333
SQFT
1104 Sigler St
Nashville, TN 37203
Maverick Row Subdivision
$324,990
Townhouse For Sale
Active Under Contract
2
BEDS
2
TOTAL BATHS
1,116
SQFT
130 Academy Sq
Nashville, TN 37210
Academy Square Subdivision
$798,500
Townhouse For Sale
Active
3
BEDS
4
TOTAL BATHS
2,292
SQFT
1629 7th Ave
Nashville, TN 37208
Germantown Subdivision
$782,000
Townhouse For Sale
Active Under Contract
3
BEDS
4
TOTAL BATHS
2,309
SQFT
1700 6th Ave #13
Nashville, TN 37208
Row At 6th And Garfield Subdivision
$669,900
Townhouse For Sale
Active Under Contract
3
BEDS
4
TOTAL BATHS
1,949
SQFT
520 Garfield St #11
Nashville, TN 37208
Row At 6th And Garfield Subdivision
$659,900
Townhouse For Sale
Active Under Contract
3
BEDS
4
TOTAL BATHS
1,912
SQFT
522 Garfield St #12
Nashville, TN 37208
Row At 6th And Garfield Subdivision
$659,900
Townhouse For Sale
Active Under Contract
3
BEDS
4
TOTAL BATHS
1,911
SQFT
518 Garfield Street #10
Nashville, TN 37208
Row At 6th And Garfield Subdivision
$850,000
Townhouse For Sale
Active Under Contract
3
BEDS
4
TOTAL BATHS
2,203
SQFT
1114 Sigler St
Nashville, TN 37203
Maverick Row Subdivision
$850,000
Townhouse For Sale
Active
3
BEDS
4
TOTAL BATHS
2,291
SQFT
1116 Sigler St
Nashville, TN 37203
Maverick Row Subdivision
$999,900
Townhouse For Sale
Pending
3
BEDS
4
TOTAL BATHS
2,729
SQFT
620 Madison Street
Nashville, TN 37208
Germantown/Elliott Subdivision
$649,900
Townhouse For Sale
Active Under Contract
3
BEDS
4
TOTAL BATHS
1,884
SQFT
510 Garfield St #6
Nashville, TN 37208
6th & Garfield Subdivision