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 - 2 weeks online
$599,900
Townhouse For Sale
Pending
3
BED
3
TOTAL BATHS
2,045
SQFT
1620b 6th Ave
Nashville, TN 37208
Germantown Subdivision
New Listing - 2 weeks online
$675,000
Townhouse For Sale
Active Under Contract
1
BED
3
TOTAL BATHS
1,465
SQFT
1912 Adelicia St
Nashville, TN 37212
The Adelicia Subdivision
$519,900
Townhouse For Sale
Active Under Contract
3
BED
4
TOTAL BATHS
1,570
SQFT
338 Harrison St
Nashville, TN 37219
District Lofts Subdivision
$400,000
Townhouse For Sale
Active Under Contract
1
BED
2
TOTAL BATHS
1,326
SQFT
512 Hume St
Nashville, TN 37208
6th & Hume Street Subdivision
$385,000
Townhouse For Sale
Active
1
BED
1
TOTAL BATHS
864
SQFT
301 Demonbreun St #815
Nashville, TN 37201
Encore Subdivision
Price Change - 21 hours ago
$419,000
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,657
SQFT
912 Ireland St
Nashville, TN 37208
Germantown/Row at Ireland Subdivision
$292,500
Townhouse For Sale
Active
1
BED
1
TOTAL BATHS
675
SQFT
1350 Rosa L Parks Blvd #237
Nashville, TN 37208
Werthan Lofts Subdivision
$799,900
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
2,105
SQFT
608 Madison Street #1
Nashville, TN 37208
Germantown/Elliott Subdivision
$999,900
Townhouse For Sale
Active
3
BED
4
TOTAL BATHS
2,729
SQFT
620 Madison Street
Nashville, TN 37208
Germantown/Elliott Subdivision
$417,000
Townhouse For Sale
Active
4
BED
4
TOTAL BATHS
1,979
SQFT
1720 Delta Ave
Nashville, TN 37208
The Artisan North Subdivision
$417,000
Townhouse For Sale
Pending
4
BED
4
TOTAL BATHS
1,979
SQFT
1718 Delta Ave
Nashville, TN 37208
The Artisan North Subdivision
$425,000
Townhouse For Sale
Active
4
BED
4
TOTAL BATHS
1,979
SQFT
1716 Delta Ave
Nashville, TN 37208
The Artisan North Subdivision
$659,900
Townhouse For Sale
Pending
3
BED
4
TOTAL BATHS
1,912
SQFT
516 Garfield St #9
Nashville, TN 37208
6th & Garfield Subdivision
$1,339,000
Townhouse For Sale
Active
4
BED
4
TOTAL BATHS
2,692
SQFT
415 Monroe St
Nashville, TN 37208
Luxus Germantown Subdivision
$649,900
Townhouse For Sale
Active Under Contract
3
BED
4
TOTAL BATHS
1,884
SQFT
510 Garfield St #6
Nashville, TN 37208
6th & Garfield Subdivision