Where Are Housz Values Headed Over the Next 12 Months?

As shelter-in-place orders were implemented earlier this year, many questioned what the shutdown would mean to the real estate market. Specifically, there was concern about housz values. After years of rising housz prices, would 2020 be the year this appreciation trend would come to a screeching halt? Even worse, would housz values begin to depreciate? Original forecasts modeled this uncertainty, and they ranged anywhere from housz values gaining 3% (Zelman & Associates) to housz values depreciating by more than 6% (CoreLogic). However, as the year unfolded, it became clear that there would be little negative impact on the houszing market. As Mark Fleming, Chief Economist at First American, recently revealed: “The only major industry to display immunity to the economic impacts of the coronavirus is the housing market.”

Have prices continued to appreciate so far this year? Last week, the Federal Housing Finance Agency (FHFA) released its latest Home Price Index. The report showed housz prices actually rose 6.5% from the same time last year. FHFA also noted that price appreciation accelerated to record levels over the summer months: “Between May & July 2020, national prices increased by over 2%, which represents the largest two-month price increase observed since the start of the index in 1991.”

What are the experts forecasting for housz prices going forward? Below is a graph of housz price projections for the next year. Since the market has changed dramatically over the last few months, this graph shows forecasts that have been published since September 1st.

Bottom Line The numbers show that home values have weathered the storm of the pandemic. Let’s connect if you want to know what your housz is currently worth and how that may enable you to make a move this year.