Where Are Home Values Headed Over the Next 12 Months?

Dated: October 3 2020

Views: 42

Where Are Home Values Headed Over the Next 12 Months?

Where Are Home Values Headed Over the Next 12 Months? | MyKCM

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 home values. After years of rising home prices, would 2020 be the year this appreciation trend would come to a screeching halt? Even worse, would home values begin to depreciate?

Original forecasts modeled this uncertainty, and they ranged anywhere from home values gaining 3% (Zelman & Associates) to home values depreciating by more than 6% (CoreLogic).

However, as the year unfolded, it became clear that there would be little negative impact on the housing 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 home 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 home prices going forward?

Below is a graph of home 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.Where Are Home Values Headed Over the Next 12 Months? | MyKCM

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 home is currently worth and how that may enable you to make a move this year. Houseofbrokers.com

Latest Blog Posts

Why Working from Home May Spark Your Next Move

Why Working from Home May Spark Your Next MoveIf you’ve been working from home this year, chances are you’ve been at it a little longer than you initially expected. Businesses

Read More

Tips to Sell Your House Safely Right Now [INFOGRAPHIC]

Tips to Sell Your House Safely Right Now [INFOGRAPHIC]Some HighlightsYour agent now has over 6 months of experience selling houses during the pandemic and can make the process easier and safer for

Read More

Winter Will Bring a Flurry of Activity to the Housing Market

Winter Will Bring a Flurry of Activity to the Housing MarketIn the second half of this year, the housing market surged with activity. Today, real estate experts are looking ahead to the

Read More

VA Home Loans: Helping Heroes Find a Home

VA Home Loans: Helping Heroes Find a HomeToday, on Veterans Day, we honor those who have served our country and thank them for their continued dedication to our nation. In the United States, there

Read More