As shelter-in-place orders were implemented earlier this year, many questioned what the shutdown would mean for the real estate market. Specifically, there was concern about home values. After years of rising house prices, would 2020 be the year when this appreciation trend would stop? Even worse if home values started depreciation?
Original forecasts modeled this uncertainty, and they ranged anywhere from home values to 3% (Zelman & Associates) to household values decreasing by more than 6% (CoreLogic).
However, as the year unfolded, it became apparent that there would be little negative impact on the housing market. Like Mark Fleming, Chief Economist at First American, lately revealed:
“The only major industry that shows immunity to the economic effects of the coronavirus is the housing market.”
Have prices continued to appreciate so far this year?
Last week, the Federal Housing Finance Agency (FHFA) has published its latest Home Price Index. The report showed house prices actually rose 6.5% from the same time last year. FHFA also noted that price appreciation has accelerated to record levels over the summer months:
“Between May and July 2020, national prices grew by more than 2%, which represents the largest bimonthly price increase observed since the beginning of the index in 1991. “
What do the experts predict about home prices going forward?
The numbers show that domestic values withstood the storm of the pandemic. Let’s get connected if you want to know what your home is worth now and how that might enable you to move in this year.
Content previously posted in Keep Current Things