The worldwide pandemic and economic recession have had a tremendous effect on the nation. There’s a lot of uncertainty when it comes to predicting consumer behavior, which is nearly impossible anyway. By extension, forecasting home prices has become difficult as well. Normally, there’s a simple formula to determine future pieces: supply and demand.
Right now, demand for homes exceeds supply. Mortgage applications are at an all-time high and inventory is at an all-time low. This normally indicates strong appreciation, but we went into a three-month reset so we’re catching up to what would’ve happened during that time. Some experts aren’t convinced the current rush of home purchases is sustainable. The pandemic and other challenges impacting the industry have created a wide range of thoughts regarding the future of home prices.
Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety, or use these timestamps to browse specific points at your leisure:
1:48—Expert analysts and their predictions for home prices
2:54—The outlook for this summer
3:17—The impact of unemployment
4:13—Why we’re not in for a full recession ala 2008
5:10—The journey ahead
5:41—Wrapping things up
As always, if you have questions about this or any real estate topic or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m happy to help.
