Will Home Values 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.
Here’s what’s going on in New Hampshire.
ShowingTime is a service many real estate broker use to set up showings of listings for sale. This is the showing time appointment requests year to date in New Hampshire compared to the same time period in 2019. 2020 Showings are up 28.9% compared to 2019. That’s an indication of a strong demand in New Hampshire
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. Demand is especially strong along the New Hampshire Seacoast and southern Maine as lots of buyers look to escape big population centers but remain close to airports, medical services, and other amenities. Portsmouth and the surrounding Seacoast towns are perfectly positioned to fill that desire. See how our Virtual Home Selling system can get your house sold quickly, safely, and for the best price.
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:
“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.”
Looking at these maps and listening to the experts, it seems that prices will remain stable to rising 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.