How much US home prices will drop over the next year - 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

According to BofA, lower home prices will be a result of lower household incomes, with the typical household income expected to drop 2% lower than pre-pandemic forecasts. The study predicts unemployment will increase to around 16% in the second quarter of this year and average 7.9% in 2021, dragging home prices down.

, are expected to soften the economic blow to the housing market, BofA predicts the lower end of the market will feel the most heat as the hospitality, travel, and energy industries grapple with the economic impacts of the outbreak.

 

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