The fiscal stimulus provided by the CARES Act will mute the impact that the economic shock has on house prices. Additionally, forbearance and foreclosure mitigation programs will limit the fire sale contagion effect on house prices. We forecast house prices to fall 0.5 percentage points over the next four quarters. Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand. Price growth accelerates back towards a long-run trend of between 2 and 3% per year.
Source: http://www.freddiemac.com/research/forecast/20200413_quarterly_forecast_housing_challenges.page
Got a news tip or correction? Let us know
If you got something out of this, please chip in to keep this site running, or subscribe to go ad-free.
2 views