Will Home Values Appreciate or Depreciate in 2020?

By
Real Estate Agent with REMAX Realty Group Lic. # SL3154233

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?”

https://teamstiller.com/content/five-steps-to-buying-a-home

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?”

 

looking to sell a house in cape coral

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.”

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. If you’re thinking about listing your home, connect with your local real estate professional: Abby Stiller who can help you capitalize on the somewhat surprising demand in the market now.

 

info provided by KCM

 

Posted by

 

Abby Stiller 

Realtor® Lic. #3154233    

12 Years of Experience

RE/MAX Realty Group    Cape Coral Fort Myers Naples  Realtor Cape Coral      

 

I help Home buyers find their dream home & Homeowners sell for more. Thinking of buying or selling? Call/Text me: 239-284-8637   Your Honest & Dedicated Realtor!

or visit: www.TeamStiller.com

 

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Topic:
Real Estate Market Trends
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Florida Lee County
Tags:
real estate market
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realtor latina
buy a house in 2020
sell a house in 2020
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Rainmaker
4,822,924
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Abby,

Charts and predictions are not necessarily a barometer of what is happening.  What I do know is that serious buyers and sellers buy and sell regardless of charts or predictions...A

May 13, 2020 11:56 AM #1
Rainmaker
3,407,432
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Abby,  Good information to know about.  I just have a buyer that was going to buy in the Middle of March and then back out now they want to wait till Sept.

 

May 14, 2020 09:59 AM #2
Rainmaker
541,785
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

Hi Will Hamm Something similar happened to one of my clients, they put the buying on hold for a month but now they are back in the game since they don't want to miss the low interest rates. 

May 14, 2020 06:37 PM #3
Rainmaker
1,268,229
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

I'm holding off on making any predictions regarding real estate or the mortgage biz, Abby Stiller ... there are just WAYYYYY too many variables at play right now.  I do like to remain current and educated as to what the market is seeing and this info surely does that .. thank you!

Gene

May 15, 2020 12:56 PM #4
Rainmaker
602,505
Sally Crane
WMS - Unity, WI
Woodland appraisal support.

Thanks for the update, all the best to you as you get many of these properties listed and sold.

Sally

 

May 17, 2020 11:08 PM #5
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Rainmaker
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Abby Stiller

Professional Bilingual Realtor (239) 284-8637
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