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Home Values Projected to Keep Rising

Tuesday, October 27, 2020   /   by RE/MAX One

Home Values Projected to Keep Rising


Home Values Projected to Keep Rising | MyKCM


As we enter the final months of 2020 and continue to work through the challenges this year has brought, some of us wonder what impact continued economic uncertainty could have on home prices. Looking at the big picture, the rules of supply and demand will give us the clearest idea of what is to come.


Due to the undersupply of homes on the market today, there’s upward pressure on prices. Consider simple economics: when there is high demand for an item and a low supply of it, consumers are willing to pay more for that item. That’s what’s happening in today’s real estate market. The housing supply shortage is also resulting in bidding wars, which will also drive price points higher in the home sale process.


There’s no evidence that buyer demand will wane. As a result, experts project price appreciation will continue over the next twelve months. Here’s a graph of the major forecasts released in the last 60 days:Home Values Projected to Keep Rising | MyKCM


I hear many foreclosures might be coming to the market soon. Won’t that drive prices down?


Some are concerned that homeowners who entered a mortgage forbearance plan might face foreclosure once their plan ends. However, when you analyze the data on those in forbearance, it’s clear the actual level of risk is quite low.


Ivy Zelman, CEO of Zelman & Associates and a highly-regarded expert in housing and housing-related industries, was very firm in a podcast last week:



“The likelihood of us having a foreclosure crisis again is about zero percent.”


With demand high, supply low, and little risk of a foreclosure crisis, home prices will continue to appreciate.


Bottom Line


Originally, many thought home prices would depreciate in 2020 due to the economic slowdown from the coronavirus. Instead, prices appreciated substantially. Over the next year, we will likely see home values rise even higher given the continued lack of inventory of homes for sale.remax one.png

ReMax One
2790 Cabot Dr Unit 4-130
Corona, CA 92883
951-735-1700
DRE# 00965994
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ReMax One
24630 Washington Ave. Suite 202
Murrieta, CA 92562
Office: 951-973-7272

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ReMax One
14268 Schleisman Rd. Suite 410
Eastvale, CA 92880
Office: 951-266-0180

Based on information from California Regional Multiple Listing Service, Inc. as of November 29, 2020. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
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