{"id":5962,"date":"2020-06-23T10:00:26","date_gmt":"2020-06-23T10:00:26","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=5962"},"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:\/\/blog.sfloridaluxuryhomes.com\/?p=5962","title":{"rendered":"What Are the Experts Saying About Future Home Prices?"},"content":{"rendered":"
\n

\"What<\/p>\n

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

\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