August Market Report

National Association of Realtors Chief Economist Lawrence Yun has shared market information since his last update in April to weigh the impact of recent economy on real estate in our area.  Here is what he shared:

  • Job numbers have retreated to the level during 2016 in Arizona.  Good news for Arizona compared to the US having the gains since 2010 wiped out.
  • The current numbers indicate we hit bottom in April and have been in a recovery since.
  • Job loss leader was the hotel and hospitality industry.  States such as New York with tough shut down saw higher numbers than softer shut down states such as Georgia.  
  • We are seeing changes in how we live and do business. More remote/virtual work, wanting a bigger house and to move out of crowded urban areas.
  • Commercial RE is not seeing a recovery.
  • Housing inventory was low pre-COVID and now it is even lower and virtually no new builds to feed into the inventory. 
  • Pending sales and loan applications are up higher than a year ago!
  • Any foreclosures hitting the market should be easily absorbed with the low inventory.  In 2009 that was not the case as inventory was high.
  • Low interest rates have created a buying opportunity, but Jumbo market remains difficult as these loans are not federally backed.  Jumbo loan buyers need to bring big down payments as these buyers are under tight scrutiny to qualify.
  • The election will probably not impact the lower/mid-priced home market.  People still need an affordable place to live.
  • Lots of money was printed to pay for the stimulus, and inflation could be on it’s way.  Investments in precious metals and real estate are a good hedge.  Talk to your investment planner if you are thinking of making a move to sell or purchase real estate.
  • Home prices forecast to still increase 3-5% over the total year with a more modest 2-3% increase in 2021.
  • Number of home sales 2020 predicted to be down 2-4% with a 8-12% increase forecast for 2021.

RobinW

Verdes Lifestyle Team HomeSmart Lifestyles 12645 N Saguaro Blvd. #5 Fountain Hills, AZ 85268

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