“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.”
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, buyer demand is now ‘strong’ and 16 of the 50 states have a ‘stable’ demand.
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. 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.”
“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. If you’re thinking about listing your home, let’s connect to discuss how you can capitalize on the somewhat surprising demand in the market now.
To view original article, visit Keeping Current Matters.
Why You May Still Want To Sell Your House After All
If you need to sell now because something in your own life has changed, don’t let mortgage rates hold you back from what you want.
Gen Z: The Next Generation Is Making Moves in the Housing Market
Generation Z (Gen Z) is eager to put down their own roots and achieve financial independence. As a result, they’re turning to homeownership.
Why You Don’t Need To Fear the Return of Adjustable-Rate Mortgages
If you’re worried today’s adjustable-rate mortgages are like the ones from the housing crash, rest assured, things are different this time.
Why Median Home Sales Price Is Confusing Right Now
Median home sales prices change because there’s a mix of homes being sold is being impacted by affordability and mortgage rates.
People Want Less Expensive Homes – And Builders Are Responding
Builders producing smaller, less expensive newly built homes give you more affordable options at a time when that’s really needed.
Don’t Expect a Flood of Foreclosures
Before there can be a significant rise in foreclosures, the number of people who can’t pay their mortgage would need to rise. Since buyers are making their payments today, a wave of foreclosures isn’t likely.