--- title: What Are the Experts Saying About Future Home Prices? description: While the economic uncertainty caused by COVID 19 is testing the resolve of certain sectors of the economy, real estate prices remain resilient image: https://blog.capitalfund1.com/hubfs/KCM%20Blog%206.28.jpg --- Still Making Loans, Still Closing on Time [COVID-19 Update](https://capitalfund1.com/covid-19-update/) [+ ](https://blog.capitalfund1.com/what-are-the-experts-saying-about-future-home-prices#) [+ ](https://blog.capitalfund1.com/what-are-the-experts-saying-about-future-home-prices#) [REQUEST INFO](https://capitalfund1.com/request-information) # What Are the Experts Saying About Future Home Prices? 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](https://economics.cmail20.com/t/ViewEmail/d/2C4CBEA02A5524AE2540EF23F30FEDED/5323CD85A2087AFD22947492D9797BBC) 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](https://haus.com/resources/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](https://www.corelogic.com/insights-download/homeowner-equity-report.aspx): Year-Over-Year decline of -1.5% - [Haus](https://haus.com/resources/june-2020-hausing-market-forecast): Year-Over-Year decline of -1% - [Zillow](http://zillow.mediaroom.com/2020-06-18-U-S-Home-Value-Growth-Slows-Prices-May-Fall-in-Second-Half-of-2020): Year-Over-Year change is forecasted to bottom out at -0.7%. - [Home Price Expectation Survey](https://pulsenomics.com/surveys/#home-price-expectations): Decline of -0.3% in 2020 - [Fannie Mae](https://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_061520.pdf): Increase of 0.4% in 2020 - [Freddie Mac](http://www.freddiemac.com/fmac-resources/research/pdf/202006-Forecast.pdf): Increase of 2.3% in 2020 - [Zelman & Associates](https://www.zelmanassociates.com/): Increase of 3.0% in 2020 - [National Association of Realtors](https://www.nar.realtor/sites/default/files/documents/forecast-Q2-2020-us-economic-outlook-05-28-2020.pdf): Increase of 3.8% in 2020 - [Mortgage Bankers Association](https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary/mortgage-finance-forecast-archives): 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. On June 28, 2020   /   [Blog](https://blog.capitalfund1.com/tag/blog) [Capital Fund I](https://blog.capitalfund1.com/tag/capital-fund-i) [Arizona real estate](https://blog.capitalfund1.com/tag/arizona-real-estate)   /   [Leave a comment](https://blog.capitalfund1.com/what-are-the-experts-saying-about-future-home-prices#comments-listing) ### Contact Capital Fund I [Back to Top](https://blog.capitalfund1.com/what-are-the-experts-saying-about-future-home-prices#) ### Contact Us ### Latest Posts - [![Two Reasons We Won’t See a Rush of Foreclosures This Fall](https://files.mykcm.com/2020/07/21114651/20200722-MEM-ENG.jpg) ](https://blog.capitalfund1.com/two-reasons-we-wont-see-a-rush-of-foreclosures-this-fall) [Two Reasons We Won’t See a Rush of Foreclosures This Fall](https://blog.capitalfund1.com/two-reasons-we-wont-see-a-rush-of-foreclosures-this-fall) The health crisis we face as a country has led businesses all over the nation to reduce or discontinue their services altogether. 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