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 - 3 days online
$759,000
Townhouse For Sale
Active
3
BED
4
TOTAL BATHS
2,127
SQFT
1121 Sigler St
Nashville, TN 37203
Element Gulch Subdivision
New Listing - 3 days online
$739,900
Townhouse For Sale
Active
3
BED
4
TOTAL BATHS
2,114
SQFT
1212 Hawkins St
Nashville, TN 37203
Element Gulch Subdivision
New Listing - 2 weeks online
$299,900
Townhouse For Sale
Active
1
BED
1
TOTAL BATHS
675
SQFT
1350 Rosa L Parks Blvd #237
Nashville, TN 37208
Werthan Lofts Subdivision
New Listing - 3 weeks online
$417,000
Townhouse For Sale
Active
4
BED
4
TOTAL BATHS
1,979
SQFT
1718 Delta Ave
Nashville, TN 37208
The Artisan North Subdivision
New Listing - 3 weeks online
$425,000
Townhouse For Sale
Active
4
BED
4
TOTAL BATHS
1,979
SQFT
1716 Delta Ave
Nashville, TN 37208
The Artisan North Subdivision
New Listing - 3 weeks online
$580,000
Townhouse For Sale
Active Under Contract
3
BED
3
TOTAL BATHS
1,474
SQFT
10 Middleton St
Nashville, TN 37210
Rutledge House Subdivision
New Listing - 3 weeks online
$620,000
Townhouse For Sale
Active Under Contract
3
BED
4
TOTAL BATHS
1,508
SQFT
8 Middleton St
Nashville, TN 37210
Rutledge House 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
$669,900
Townhouse For Sale
Active
3
BED
4
TOTAL BATHS
1,949
SQFT
512 Garfield St #7
Nashville, TN 37208
6th & Garfield 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
$890,000
Townhouse For Sale
Active
3
BED
4
TOTAL BATHS
2,412
SQFT
610 Madison Street
Nashville, TN 37208
Germantown/Elliott Subdivision
$799,000
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
2,333
SQFT
1114 Sigler St
Nashville, TN 37203
Maverick Row Subdivision