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Where Are Home Values Headed Over the Next 12 Months?

Tuesday, September 29, 2020   /   by Nicole Solari

Where Are Home 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 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? | Keeping Current Matters


Bottom Line


The numbers show that home values have weathered the storm of the pandemic. If you want to know what your home is currently worth and how that may enable you to make a move this year, contact your local real estate professional.


  real estate, the solari group, level up realty, for buyers, for sellers, housing market updates, pricing

Level Up Realty
Nicole Solari
490 Chadbourne Road, Suite A123
Fairfield, CA 94534
707-486-5400
DRE# 02014153

IDX Content is provided via the Internet for consumers’ personal, non-commercial use. Variable Price’ indicates the seller is willing to entertain offers within a Listing Price Range. All measurements and all calculations of area are approximate. Information provided by Seller/Other sources, not verified by Broker. All interested persons should independently verify accuracy of information. Provided properties may or may not be listed by the office/agent presenting the information. IDX provided by Commissions Inc. Data last updated:December 2, 2022
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