What Are Experts Saying about Home Prices?
If you own a home you might be interested in knowing where home prices are predicted to go. Read on to learn what the experts are saying. As always we are happy to answer any questions you have about your current mortgage or a future purchase. 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. Here is a graph showing all of the projections: There’s a simple formula to determine the future price of any item: calculate the supply of that item ...