Before the coronavirus pandemic, just 1 percent of all markets could anticipate home value depreciation. Now, one-tenth of them may face decreasing home prices, according to Veros Real Estate Solutions. Despite this sobering reminder of how the pandemic froze what would have been a bustling spring for real estate, Veros predicts that some cities will continue to see strong growth, particularly in the West. See how the coronavirus may impact your city’s home-price growth.
With spiking unemployment and financial uncertainty looming, home prices are expected to grow at half the rate that was projected before the COVID-19 outbreak, according to Veros Real Estate Solutions.
Among the 100 largest housing markets in the country, Veros expects a 1.9% average annual appreciation rate through the first quarter of 2021. In early March, the real estate valuator projected a rate of 3.9% through the end of 2020, given that housing appreciation showed signs of flattening compared to the past few years and the COVID-19 outbreak had already started to stifle home buying. The new, lower projection takes into account rising unemployment and a falling GDP.
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