What Is the Probability That Home Values Sink?
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.
2019 2020 2021 2022
- Home price Expectation +4.1 +2.8 +2.5 +3/0
- Mortgage Banker Assoc. +4.7 +3.5 +2.6 N/A
- Zelma & Assoc. +3.5 +3.2 +2.6 N/A
- Freddie Mac +3.4 +2.6 N/A N/A
- NAR +4.0 +3.3 N/A N/A
- Fannie Mae +5.4 +3.7 N/A N/a
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.
What Is the Probability That Home Values Sink? | Keeping Current Matters
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.
This is a great time to cash out if down sizing too. Call M. Celata Real Estate for your free consultation or contact us thru our website www.mcelatarealestate.
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