Home Price Forecast

I would advise all readers to take this forecast with a grain of salt. Personally, I believe there are too many economic factors that affect future home price appreciation, to allow any single individual or organization to really make an accurate forecast.

Here in Southern California we’ve seen our share of accelerated home price appreciation, quickly followed by accelerated depreciation that wiped out 30% of the average home price appreciation. After this latest dip bottomed out, we’ve seen a really good cycle of average home appreciation, which I believe we are in the tail end of currently.

From now on, will we see very modest California home price appreciation, or are we on the verge of another dramatic down cycle? Each of us here in Southern California has to make our own informed decision for the California home price forecast.

Home Price Forecast

Now let’s look at some real estate industry insider reliable sources and see what they are forecasting for possible home appreciation:

Fannie Mae -one of the largest sources for home financing. They are forecasting this year to end with average appreciation of 4.6%, and next year to see average appreciation at 2.9%.

National Association of Realtors – the largest Association of real estate professionals in the world. They are forecasting this year to and with average appreciation of 2.8%, and 2020 to see appreciation of 3.2%.

Freddie Mac - is the other large national organization providing financing to the real estate industry. For this year they are forecasting an average of 3.6% appreciation, and next year 2.7% appreciation.

Mortgage Bankers Association – this is the largest real estate lending trade Association. They are looking at this year ending with 4.7% appreciation, and next year 3.5% appreciation.

The home price expectation survey - this was a survey of over 100 real estate professionals, market analyst and economist. This surveys consensus was that will end this year with approximately 4.1% home appreciation, and next year will see an average home price appreciation of 2.8%

Home Price Forecast