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

A report by the Seattle brokerage Redfin said nationwide home sales dropped 9.1% from February to March on a seasonally adjusted basis — marking the steepest decline Redfin has seen since it started recording data eight years ago.

But how low could prices go over the next 12 months, and when will they hit bottom?

Business Insider obtained a Bank of America research note from April that analyzed the next year of household incomes and evaluated the strengths and weaknesses of the housing market heading into March, based off factors including inventory and foreclosure risk.

It also considered factors including the unemployment rate and the $2.2 trillion stimulus package, including the Payroll Protection Program for small businesses.

Prior to the pandemic, BofA had estimated that home prices would increase 4% to 5% in 2020. But it rapidly changed that forecast after the events of March and April.

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

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