What Is the Probability That Home Values Sink?

What Is the Probability That Home Values Sink?
What Is the Probability That Home Values Sink?

Will Home Values Sink IsOn The Minds Of Potential Home Buyers?

With the current uncertainty about the economy triggered by apotential trade war, some people are waiting to purchase theirfirst home. They are also not looking to move up to theirdream house because they think or hope home prices will drop overthe next few years. However, the experts disagree with thisperspective.

Here is a table showing the predicted levels of appreciationfrom six major housing sources:

What Is the Probability That Home Values Sink?| MyKCM

As we can see, every source believes home prices will continueto appreciate (albeit at lower levels than we have seen over thelast several years). But, not one source is calling forresidential real estate values todepreciate.

Additionally, ARCH Mortgage InsuranceCompany in their current Housing and Mortgage MarketReview revealed their latest ARCH RiskIndex, which estimates the probability of home prices beinglower in two years. There was not one state that even had amoderate probability of home prices lowering. In fact, 34 of the 50states had a minimal probability.

What Is the Probability That Home Values Sink?| MyKCM

Bottom Line

Those waiting for prices to fall before purchasing a home shouldrealize that the probability of that happening anytime soon is verylow. With mortgage rates already at near historic lows, now may bethe time to act.