There is no question that the housing market has been affected to some degree by the pandemic that our country is experiencing. As a result, some potential buyings are questioning whether home prices are expected to appreciate or depreciate. The price of any commodity is determined by the market's supply and demand. Every month the National Association of Realtor (NAR) conducts a survey of over 50,000 Realtors on their expectations of home prices, sales, and the market. The result of the survey is referred to as the Realtors Confidence Index. Here is what the latest survey has shown.
The map below was created after surveying buyer traffic in all states.
The dark blue indicates stronger demand for homes. The light blue indicates a stable market and the grey indicates weak buyer demand. 34 states currently have "strong" buyer demand and 16 have "stable" demand.
The graph below shows seller traffic in all 50 states.
46 states exhibit "weak" selling traffic and 3 states show "stable" traffic. Only 1 state - Alaska shows "strong" seller traffic. This graph shows that there are fewer homes for sale on the market. Demand is still strong, however supply is low. As a result homes will not depreciate.
What are the experts saying?
“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.”
Home prices will remain stable in 2020. If you are thinking about selling, this is an excellent time. Families are still growing and looking for larger homes. Take advantage of the fact that inventory is low to get your home sold. Let's connect today so we can guide you through the process.
Contact South Florida's Real Estate Experts at Prestige Waterfront Realty by contacting 954-830-7000.