The Coronavirus (COVID-19) has caused massive global uncertainty, including a U.S. stock market correction no one could have seen coming. While much of the news has been about the effect
What Is the Probability That Home Values Sink?...
Dated: November 3 2019
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With the current uncertainty about the economy triggered by a potential trade war, some people are waiting to purchase their first home or move-up to their dream house because they think or hope home prices will drop over the next few years. However, the experts disagree with this perspective.
Here is a table showing the predicted levels of appreciation from six major housing sources:
As we can see, every source believes home prices will continue to appreciate (albeit at lower levels than we have seen over the last several years). But, not one source is calling for residential real estate values to depreciate.
Additionally, ARCH Mortgage Insurance Company in their current Housing and Mortgage Market Review revealed their latest ARCH Risk Index, which estimates the probability of home prices being lower in two years. There was not one state that even had a moderate probability of home prices lowering. In fact, 34 of the 50 states had a minimal probability.
Bottom Line
Those waiting for prices to fall before purchasing a home should realize that the probability of that happening anytime soon is very low. With mortgage rates already at near historic lows, now may be the time to act.
Guillaume Derouet
Born in Paris France, I moved to the United States of America in 2009 where I immediately embarked on my Real Estate career in Manhattan New York. Wanting to help people from all nationalities here an....
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IDX provided courtesy of Realcomp II Ltd., via eXp Realty in Detroit and The Originating MLS(found above), © 2021 Realcomp II Ltd. Shareholders. The information being provided is for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.
