What’s New…A worldwide pandemic and an economic recession have had a tremendous effect on the nation. The uncertainty brought about by both has made predicting consumer behavior nearly impossible. For that reason, forecasting home prices has become extremely difficult.
Normally, 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. Mortgage applications to buy a home just rose to the highest level in 11 years while inventory of homes for sale is at (or near) an all-time low. That would usually indicate strong appreciation for home values as we move throughout the year.
Some experts, however, are not convinced the current rush of purchasers is sustainable. Ralph McLaughlin, Chief Economist at Haus, explained in their June 2020 Hausing Market Forecast why there is concern:
“The upswing that we’ll see this summer is a result of pent-up demand from homebuyers and supply-in-progress from homebuilders that has simply been pushed off a few months. However, after this pent-up demand goes away, the true economic scarring due to the pandemic will begin to affect the housing market as the tide of pent-up demand goes out.”
The virus and other challenges currently impacting the industry have created a wide range of thoughts regarding the future of home prices. Here’s a list of analysts and their projections, from the lowest depreciation to the highest appreciation:
Haus: Year-Over-Year decline of -1%
Zillow: Year-Over-Year change is forecasted to bottom out at -0.7%
We can garner two important points from this list:
1. There is no real consensus among the experts.
2. No one projects prices to crash like they did in 2008.
Whether you’re thinking of buying a home or selling your house, know that home prices will not change dramatically this year, even with all of the uncertainty we’ve faced in 2020. (Resource: Keeping Current Matters)
5 Bed | 3 Bath | $1,525,000 | Compass Listing
Located in one of the most desired neighborhoods in Danville, sits a beautiful Diablo West home on approximately 1/3 acre. Eat-in kitchen showcases maple cabinets, 6 burner gas stove, pantry, stainless steel appliances, and a center island with granite countertop. A bedroom and full bathroom on the lower level is perfect for a guest suite or office. Relaxing Master retreat with two closets and a recently remodeled bathroom with white cabinetry, quartz counters and a brand new stone shower. The flat backyard is designed for entertaining featuring a large patio for lounging and outdoor dining, massive pergola for shade, sport court, soothing fountain and spacious grass area.
4 Bed | 3 Bath | $1,585,000 | Compass Listing
Fabulous updated tri-level home situated on a huge corner lot in the heart of Danville Station! Sprawling front lawn, mature landscaping, great yard for entertaining with pool and spa, patio, lawn, and quaint gazebo. Spacious living room with vaulted ceilings, adjacent to formal dining room. Updated kitchen with white cabinets, granite counters, all new recessed lighting and huge window looking out to backyard. One bedroom and full bath downstairs. Huge master suite with two walk-in closets, recessed lighting, updated shower, room to create 5th bedroom or separate den/office. Fantastic location close to top schools, parks, Iron Horse Trail and just minutes from downtown!
1590 Las Trampas Road, Alamo, CA 94507
4 Bed | 2.5 Bath | $2,149,000 | Compass Listing
Quintessential rancher in Westside Alamo on a dream lot! The desirable single-story floor plan offers an ideal layout for daily living, entertaining and play. Walk in through a picturesque front porch to a large living room with vaulted ceilings. Gourmet kitchen features stainless steel appliances, island with bar seating, sink and views to backyard. A bonus room with separate entrance can be used as a home office, fifth bedroom or anything else you might need. Incredible yard with expansive lawn, pool, spa, pool house and an oversized garage. Ideal location!
450 Las Pulgas Drive, Woodside, CA 94062
5 Bed | 6.5 Bath | $15,950,000 | Compass Listing
This stunning French-Provincial estate is set on approximately 4 acres of beautiful land in prestigious Woodside. Completed in 2015, the turn-key manor is the culmination of the current owners vision to create a ready-to-live-in space that celebrates art, form, beauty and function. Every element has been masterfully chosen for lavish country living and grand scale entertaining, from the spacious formal rooms with carved stone fireplaces, to the tremendous catering kitchen with restaurant quality appliances and butlers catering pantry. Rounding out amenities are a fitness room, a cinema theater, wine storage, a recreation room with kitchenette and a spacious family room off the kitchen with outdoor access. Expansive rear terrace and infinity pool and spa.
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Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. Equal Housing Opportunity.