How much US home prices are expected to drop in 2020 - Business Insider

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Here's how much home prices will drop over the next year — and when they're expected to hit bottom

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.According to a report by Bank of America, lower home prices post-pandemic will be a result of lower household incomes.

While both the Payroll Protection Program and the CARES Act are expected to soften the economic blow to the housing market, BofA predicts the lower end of the housing market will feel the most heat as the hospitality, travel, and energy industries grapple with the economic impacts of the outbreak. Prior to the pandemic, BofA had estimated that home prices would increase 4% to 5% in 2020, but now it forecasts that home prices will drop until they hit a bottom in April 2021.

 

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