CoreLogic’s Housing Price Index Forecast from May 2020 to May 2021 predicts a major decline in housing prices over the next 12 months.
Right now the housing market is still steady due to low inventory and low mortgage rates keeping buyers on the hunt for a new home or a second home.
However, they expect to see a downturn begin in June’s data and continue through the summer.
“The price decline is expected to be widespread. CoreLogic’s Market Risk Indicator predicts 125 metro areas have at least a 75 percent probability of price decline by May 2021 and prices are expected to retreat in every state. In overvalued markets like Las Vegas, where the local tourism economy took a hit due to COVID-19, home prices are expected to drop by 20.1 percent by May 2021. Meanwhile, in San Diego-where the market conditions are considered normal- the downturn is expected to be only around 1.3 percent over the next 12 months.”