What Are Experts Saying about Home Prices?
Dan May • July 15, 2020
What Are Experts Saying about Home Prices?
Last week, a very well-respected real estate analytics firm surprised many with their home price projection for the next twelve months. CoreLogic, in their latest Home Price Index
said:
“The economic downturn that started in March 2020 is predicted to cause a 6.6% drop in the HPI by May 2021, which would be the first decrease in annual home prices in over 9 years.”
The forecast was surprising as it was strikingly different than any other projection by major analysts. Six of the other eight forecasts call for appreciation, and the two who project depreciation indicate it will be one percent or less.
Here is a graph showing all of the projections:
There’s a simple formula to determine the future price of any item: calculate the supply of that item in ratio to the demand for that item. In housing right now, demand far exceeds supply. Last week mortgage applications to buy a home were 33% higher than they were at the same time last year. The available inventory of homes for sale is 31% lower than it was last year. Normally, these numbers should call for homes to continue to appreciate.
Bottom Line
Because of the uncertainty with the pandemic, any economic prediction is extremely difficult. However, looking at the limited supply of homes for sale and the tremendous demand for housing, it is difficult to disagree with the majority of analysts who are calling for price appreciation.
Ready to Start Planning? If you're considering selling your home in the coming year, now is the perfect time to start the conversation. A personalized home valuation, professional market analysis, and no-obligation consultation can help you understand your home's current value, identify opportunities to maximize your return, and create a strategy that fits your timeline. The best time to prepare your home is before you decide to list it. Contact Dan May today to schedule your complimentary home valuation or consultation and start planning with confidence. Dan May Dan May Real Estate Team REALTOR®, Broker Associate Mobile: (310) 739-8647 dan@danmayrealestateteam.com CA DRE #01069168 LinkedIn - https://www.linkedin.com/in/dan-may-a161a55/ Instagram - https://www.instagram.com/danmayrealestateteam/ Facebook - https://www.facebook.com/DanMayRealEstate
Why Summer Is the Best Time to Start Planning. A Little Preparation Today Can Lead to a More Successful Sale Tomorrow.
Los Angeles neighborhood highlighting homeownership and property values in 2026
West LA Real Estate Update: Castle Heights Area Home Sold
Well-Priced Homes Are Still Selling Quickly in Today’s Market
Lake Balboa Fixer-ADU Opportunity 6555 De Celis Listed at $599,000
West LA Real Estate Update: Castle Heights Area Home in Escrow
Is Spring 2026 a Good Time to Sell a Home on LA’s Westside?
Castle Heights remains one of the smaller but consistently active residential markets on Los Angeles’ Westside. Located between Beverlywood and Culver City , the neighborhood attracts buyers looking for a central location with convenient access to employment centers, dining, and entertainment throughout the Westside.
