What Is Really Happening With Home Prices?



Home values have softened over the last twelve months. We are no longer seeing 6-7% annual appreciation levels for the national housing market. The current numbers are closer to 4%. Some have suggested that year-over-year appreciation levels could fall to 3% or less this year.

However, a stronger-than-expected economy and a good spring housing market have changed some opinions. Some analysts are now predicting that home value appreciation may begin to increase as we move forward.

Here are three examples:

Mark Fleming, Chief Economist of First American

“Data on the movement of unadjusted house prices during the early spring home-buying season won’t be available for a few more months, but it’s quite likely that price appreciation will accelerate again.”

CoreLogic’s April “Home Price Insights”

“Home prices nationwide, including distressed sales, increased year over year by 3.7% in March 2019 compared with March 2018…The CoreLogic HPI Forecast indicates that home prices will increase by 4.8% on a year-over-year basis from March 2019 to March 2020.”

Pulsenomics’ Quarterly “Home Price Expectation Survey”

The 2018 4th Quarter survey called for 3.8% appreciation for 2019.The 2019 1st Quarter survey raised the appreciation projection for this year to 4.3%.

Derek Veldhouse

Derek Veldhouse

ABR, RCC, CNHS

515-770-4100

dveldhouse@dsmhomes.com

https://www.derekveldhouse.com

www.dveldhouse.com

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© 2020 Derek Veldhouse, Liz Doerring