{"id":767,"date":"2020-05-11T13:49:43","date_gmt":"2020-05-11T13:49:43","guid":{"rendered":"http:\/\/phphouses.com\/blog\/?p=767"},"modified":"2020-05-11T13:49:43","modified_gmt":"2020-05-11T13:49:43","slug":"will-home-values-appreciate-depreciate-2020","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/will-home-values-appreciate-depreciate-2020\/","title":{"rendered":"Will Home Values Appreciate or Depreciate in 2020?"},"content":{"rendered":"
\"\"

Will Home Values Appreciate or Depreciate in 2020?<\/p><\/div>\n

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\u2019s demand for that item. Each month the\u00a0National Association of Realtors<\/em>\u00a0(NAR) surveys\u00a0\u201cover 50,000 real estate practitioners about their expectations for home sales, prices and market conditions\u201d<\/em>\u00a0for the\u00a0REALTORS Confidence Index<\/a>. Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand) during this pandemic.<\/p>\n

Buyer Demand<\/strong><\/h4>\n

The map below was created after asking the question:\u00a0\u201cHow would you rate buyer traffic in your area?\u201d<\/em><\/p>\n

\"\"

Buyer Traffic Index<\/p><\/div>\n

34 of the 50 U.S. states, buyer demand is now \u2018strong\u2019 and 16 of the 50 states have a \u2018stable\u2019 demand.<\/p>\n

Seller Supply<\/strong><\/h4>\n

The index also asks:\u00a0\u201cHow would you rate seller traffic in your area?\u201d<\/em><\/p>\n

\"\"

Seller Traffic Index<\/p><\/div>\n

As the map above indicates, 46 states and Washington, D.C. reported \u2018weak\u2019 seller traffic, 3 states reported \u2018stable\u2019 seller traffic, and 1 state reported \u2018strong\u2019 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.<\/p>\n

What are the experts saying?<\/strong><\/h4>\n

Here are the thoughts of three industry experts on the subject:\u00a0Ivy Zelman<\/a>:<\/strong><\/p>\n

\u201cWe 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.\u201d<\/em><\/p><\/blockquote>\n

Mark Fleming,\u00a0Chief Economist, First American<\/em><\/a>:<\/strong><\/p>\n

\u201cHousing supply remains at historically low levels, so house price growth is likely to slow, but it\u2019s not likely to go negative.\u201d<\/em><\/p><\/blockquote>\n

Freddie Mac<\/em><\/a>:<\/em><\/strong><\/p>\n

\u201cTwo 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.\u201d<\/em><\/p><\/blockquote>\n

Bottom Line<\/strong><\/h3>\n

Looking at these maps and listening to the experts, it seems that prices will remain stable throughout 2020. If you\u2019re thinking about listing your home, let\u2019s connect to discuss how you can capitalize on the somewhat surprising demand in the market now.<\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
\nFacebook<\/a>
\nLinkedin<\/a>
\nTwitter<\/a>
\nInstagram<\/a><\/p>\n

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Housing Market Finish Reading Will Home Values Appreciate or Depreciate in 2020?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[10,18,16,183,91,126,25,9,49,42,184,23,40,63,20,24,48,13,47,19,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/767"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=767"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/767\/revisions"}],"predecessor-version":[{"id":771,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/767\/revisions\/771"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}