{"id":7289,"date":"2020-06-23T10:00:26","date_gmt":"2020-06-23T10:00:26","guid":{"rendered":"https:\/\/thezakariagroup.com\/what-are-the-experts-saying-about-future-home-prices\/"},"modified":"2020-06-23T10:00:26","modified_gmt":"2020-06-23T10:00:26","slug":"what-are-the-experts-saying-about-future-home-prices","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/what-are-the-experts-saying-about-future-home-prices\/","title":{"rendered":"What Are the Experts Saying About Future Home Prices?"},"content":{"rendered":"
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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.<\/p>\n
<\/span><\/p>\n 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<\/a> 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.<\/p>\n Some experts, however, are not convinced the current rush of purchasers is sustainable. Ralph McLaughlin, Chief Economist<\/em> at Haus<\/em>, explained in their June 2020 Hausing Market Forecast<\/a> why there is concern:<\/p>\n “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.”<\/em><\/p>\n<\/blockquote>\n 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:<\/p>\n We can garner two important points from this list:<\/p>\n 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.<\/p>\n<\/div>\n\n
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Bottom Line<\/strong><\/h3>\n