inception-app-prod/OGU0MjQ4NjMtYzFmNC00NzQyLTljZmUtZjc3Y2YwZGJmNmFi/logo/2020/05/website-header-logo.png
Your Real Estate Resource!
  • Bast Real Estate
    • Who Are We
    • Meet The Team
    • What Our Clients Are Saying
  • Buyers
    • Buyer’s Guide
    • Community Links
    • Homes For Sale By City
    • Our Featured Listings
    • Temecula Home Inventory $450k>
    • Meadowview Equestrian Community, Temecula
  • Sellers
    • Seller’s Guide
    • What’s My Home REALLY Worth?
    • Short Sales
  • Real Estate Resource
    • Blog
    • MVP
    • Real Estate Videos…To Keep You In The Know
    • COVID-19 Resources
    • Our Preferred Vendors
    • Community Links
    • Your Southern California Referral Partner
  • Let’s Talk Real Estate – Contact
Jeff & Stephanie Bast
01291224 | 01878816
951.264.8360
951.264.8387
bastteam@bastrealestate.com
Sign In
Sign Up
inception-app-prod/OGU0MjQ4NjMtYzFmNC00NzQyLTljZmUtZjc3Y2YwZGJmNmFi/logo/2020/05/website-header-logo.png
Your Real Estate Resource!
  • Bast Real Estate
    • Who Are We
    • Meet The Team
    • What Our Clients Are Saying
  • Buyers
    • Buyer’s Guide
    • Community Links
    • Homes For Sale By City
    • Our Featured Listings
    • Temecula Home Inventory $450k>
    • Meadowview Equestrian Community, Temecula
  • Sellers
    • Seller’s Guide
    • What’s My Home REALLY Worth?
    • Short Sales
  • Real Estate Resource
    • Blog
    • MVP
    • Real Estate Videos…To Keep You In The Know
    • COVID-19 Resources
    • Our Preferred Vendors
    • Community Links
    • Your Southern California Referral Partner
  • Let’s Talk Real Estate – Contact
inception-app-prod/OGU0MjQ4NjMtYzFmNC00NzQyLTljZmUtZjc3Y2YwZGJmNmFi/logo/2020/05/website-header-logo.png
Your Real Estate Resource!
inception-app-prod/OGU0MjQ4NjMtYzFmNC00NzQyLTljZmUtZjc3Y2YwZGJmNmFi/content/2020/06/20200623-kcm-share.jpg

What Are the Experts Saying About Future Home Prices?

inception-app-prod/OGU0MjQ4NjMtYzFmNC00NzQyLTljZmUtZjc3Y2YwZGJmNmFi/content/2021/02/teampicjeffandsteph-4.jpg
Jeff & Stephanie Bast,06/23/2020

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:

  • CoreLogic: Year-Over-Year decline of -1.5%
  • Haus: Year-Over-Year decline of -1%
  • Zillow: Year-Over-Year change is forecasted to bottom out at -0.7%.
  • Home Price Expectation Survey: Decline of -0.3% in 2020
  • Fannie Mae: Increase of 0.4% in 2020
  • Freddie Mac: Increase of 2.3% in 2020
  • Zelman & Associates: Increase of 3.0% in 2020
  • National Association of Realtors: Increase of 3.8% in 2020
  • Mortgage Bankers Association: Increase of 4.0% in 2020

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.

Print Details
Previous post
Next post
Homebuyers Are in the Mood to Buy Today
New Index Reveals Impact of COVID-19 on Real Estate

Search listings

Enter city, zip, neighborhood, address…
Loading in progress…
No results found
Type in anything you’re looking for
Search

Let's Talk Real Estate..

Tell us how we can serve you better today. Are you thinking of selling/purchasing a home or just curious?
SEND
Submitting
Oops! Error occurred.

Office

Bast Real Estate Sales & Consulting @ KW
27290 Madison Av Ste 200Temecula
CA 92590 | DRE Lic# 01411306
951.264.8360
951.264.8387
bastteam@bastrealestate.com

About us

  • Bast Real Estate
  • Who Are We
  • Buyers
  • Sellers
  • Blog
  • Let’s Talk Real Estate – Contact
  • MVP
  • Real Estate Resource

Consumer Protection & Privacy

  • Accessibility
  • DMCA Compliance
For ADA assistance, please email compliance@placester.com. If you experience difficulty in accessing any part of this website, email us, and we will work with you to provide the information.
inception-app-prod/OGU0MjQ4NjMtYzFmNC00NzQyLTljZmUtZjc3Y2YwZGJmNmFi/logo/2020/05/website-header-logo.png

© 2021 All rights reserved

Created with Placester

Sign in

Sign In
Forgot your password?
Create an account
You have been successfully logged in
The page will reload automatically.
Go to the homepage
Sorry something went wrong
Login or password are incorrect. Please try again.
Try again

Sign Up

Sign Up
Already a User? Sign In
You have been successfully registered
Please check your email.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Reset password

Reset password
Return to Log In
Reset password email has been sent.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Change password

Change password
Sign Up
Your password has been successfully reseted.
Go to the homepage
Sorry something went wrong
Please try again.
Try again
Send
Success! Your message was sent!
Back to homepage
Oops! Error occurred.
Please try again.
Back to form
Already a User? Sign In

Account verification in progress

Account Verified!
You may now log in into your account
Go to the homepage
Error
Please try again.
Go to the homepage

Share this listing

Copy Link