Will Home Values in Chandler and the East Valley Appreciate or Depreciate in 2020?
With the housing market staggered to some degree by the health crisis the country is currently facing, some potential purchasers are questioning whether home values will be impacted. The price of any item is determined by supply as well as the market’s demand for that item.
Each month the National Association of Realtors (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for the REALTORS Confidence Index.
Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand) during this pandemic.
Buyer Demand
The map below was created after asking the question: “How would you rate buyer traffic in your area?”
Each month the National Association of Realtors (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for the REALTORS Confidence Index.
Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand) during this pandemic.
Buyer Demand
The map below was created after asking the question: “How would you rate buyer traffic in your area?”
The darker the blue, the stronger the demand for homes is in that area. The survey shows that in 34 of the 50 U.S. states, including Arizona, buyer demand is now ‘strong’ and 16 of the 50 states have a ‘stable’ demand. Arizona still has plenty of buyers looking to get into a new home.
Seller Supply
The index also asks: “How would you rate seller traffic in your area?”
Seller Supply
The index also asks: “How would you rate seller traffic in your area?”
As the map above indicates, 46 states and Washington, D.C. reported ‘weak’ seller traffic, 3 states reported ‘stable’ seller traffic, and 1 state reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the needs of buyers looking for homes right now. Many home owners in Arizona, and other parts of the country, put their home selling plans on hold and are waiting to see what happens with COVID-19 and the economy.
With demand still stronger than supply, home values should not depreciate.
What are the experts saying?
Here are the thoughts of three industry experts on the subject:
Ivy Zelman:
“We note that inventory as a percent of households sits at the lowest level ever, something
we believe will limit the overall degree of home price pressure through the year.”
Mark Fleming, Chief Economist, First American:
“Housing supply remains at historically low levels, so house price growth is likely to slow, but
it’s not likely to go negative.”
Freddie Mac:
“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.”
With demand still stronger than supply, home values should not depreciate.
What are the experts saying?
Here are the thoughts of three industry experts on the subject:
Ivy Zelman:
“We note that inventory as a percent of households sits at the lowest level ever, something
we believe will limit the overall degree of home price pressure through the year.”
Mark Fleming, Chief Economist, First American:
“Housing supply remains at historically low levels, so house price growth is likely to slow, but
it’s not likely to go negative.”
Freddie Mac:
“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.”
Bottom Line
Looking at these maps and listening to the experts, it seems that prices will remain stable throughout 2020, and may even increase in certain areas like Arizona. If you’re thinking about listing your home, connect with a local real estate professional who can help you capitalize on the somewhat surprising demand in the market now.
Need to buy or sell a home during this Coronavirus crisis, we can help you. We have adjusted the way we work with home buyers and sellers, and have the processes and resources in place to help. Feel free to reach out to me if you have any questions about what it takes to purchase a home, or get your Phoenix Metro or East Valley home sold during these trying times. Just give me a call/text at 602-295-6807 and I will be glad to help.
"Real Estate is not just a job for me, it's about making a difference in the lives of others"
Troy Erickson Realtor
Call/Text: 602-295-6807
[email protected]
Linkedin Profile
Facebook Page
Looking at these maps and listening to the experts, it seems that prices will remain stable throughout 2020, and may even increase in certain areas like Arizona. If you’re thinking about listing your home, connect with a local real estate professional who can help you capitalize on the somewhat surprising demand in the market now.
Need to buy or sell a home during this Coronavirus crisis, we can help you. We have adjusted the way we work with home buyers and sellers, and have the processes and resources in place to help. Feel free to reach out to me if you have any questions about what it takes to purchase a home, or get your Phoenix Metro or East Valley home sold during these trying times. Just give me a call/text at 602-295-6807 and I will be glad to help.
"Real Estate is not just a job for me, it's about making a difference in the lives of others"
Troy Erickson Realtor
Call/Text: 602-295-6807
[email protected]
Linkedin Profile
Facebook Page
Troy Erickson has been blogging about Arizona real estate since 2006. He is a residential real estate agent who specializes in helping home buyers, sellers, and investors in Chandler and the East Valley. He has been recognized for his local market expertise, and frequently volunteers within his community.
RSS Feed
