What are Experts saying about Home Prices?

by kevinjones on August 4, 2020

in How's The Market

What are Experts Saying About Home Prices?  Realty Professionals  805-473-0300

20200714 KCM Share 300x164 What are Experts saying about Home Prices?

Realty Professionals 805-473-0300

Last week, a very well-respected real estate analytics firm surprised many with their home price projection for the next twelve months. CoreLogic, in their latest Home Price Index said:

“The economic downturn that started in March 2020 is predicted to cause a 6.6% drop in the HPI by May 2021, which would be the first decrease in annual home prices in over 9 years.”
The forecast was surprising as it was strikingly different than any other projection by major analysts. Six of the other eight forecasts call for appreciation, and the two who project depreciation indicate it will be one percent or less.
What Are Experts Saying about Home Prices?
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. Last week mortgage applications to buy a home were 33% higher than they were at the same time last year. The available inventory of homes for sale is 31% lower than it was last year. Normally, these numbers should call for homes to continue to appreciate.
Bottom Line
Because of the uncertainty with the pandemic, any economic prediction is extremely difficult. However, looking at the limited supply of homes for sale and the tremendous demand for housing, it is difficult to disagree with the majority of analysts who are calling for price appreciation.
Call today if you are having any consideration of Selling so we can show you how to sell your property safely, for the most amount of money, with the best terms and in the shortest amount of time!
Kevin Jones, Broker. 805-473-0300
Realty Professionals Lic#01128892 / 01892221

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Post by Kevin Jones

Realty Professionals 805-473-0300 791 Price Street Suite 191 Pismo Beach Ca 93449

Kevin has written 477 articles.

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