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?”
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:
“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. #KeepingCurrentMatters
Written on
If you want to increase your familiarity just keep visiting this web site and be updated with the most up-to-date news posted here.| Carmelina Chrisse Gunnar
Written on
I wanted to thank you for this wonderful read!! I certainly loved every bit of it. Joline Temp Kampmann
Written on
I have recently started a web site, the information you provide on this web site has helped me tremendously. Thank you for all of your time & work. Rosalind Teodoro Valerie
Written on
I was reading through some of your articles on this site and I believe this web site is real informative! Continue putting up. Korella Chaunce Immanuel
Written on
I regard something truly interesting about your website so I saved to bookmarks . Janey Britt Forlini
Written on
I love it when folks come together and share views. Great site, continue the good work! Tracy Padraig Arette
Written on
Simply wish to say your article is as astonishing. The clearness in your post is simply nice and i can assume you are an expert on this subject. Well with your permission let me to grab your feed to keep updated with forthcoming post. Thanks a million and please continue the gratifying work. Melosa Lannie Greenland
Written on
Pretty! This was an incredibly wonderful post. Thanks for providing this information. Charlot Brigham Thetis
Written on
We stumbled over here by a different web address and thought I should check things out. I like what I see so i am just following you. Look forward to looking at your web page again.| Cynthia Griffin Selima
Written on
Regards for all your efforts that you have put in this. very interesting info . Elga Brodie Becka
Written on
Great post. I was checking continuously this blog and I am impressed! Extremely helpful information particularly the last part I care for such info a lot. I was seeking this certain info for a very long time. Thank you and good luck. Tawsha Ganny Sawyer
Written on
I loved as much as you will receive carried out right here. The sketch is tasteful, your authored material stylish. nonetheless, you command get bought an nervousness over that you wish be delivering the following. unwell unquestionably come further formerly again since exactly the same nearly very often inside case you shield this hike. Vonnie Cori Files
Written on
You made some decent points there. I did a search on the topic and found most guys will approve with your blog. Brandy Holt Ofella
Written on
Hi there, after reading this remarkable paragraph i am as well happy to share my knowledge here with colleagues. Dona Elihu Thisbee
Written on
You should take part in a contest for one of the highest quality sites on the internet. I will highly recommend this website! Cindee Antonino Agler
Written on
Way cool! Some extremely valid points! I appreciate you penning this write-up and also the rest of the website is extremely good. Cara Josiah Labana
Written on
I just like the helpful info you supply on your articles. Darcie Harlin Almena