Will our market appreciate or depreciate this year?
Economists have come out with their predictions for the rest of 2020—will we see appreciation or depreciation this year?
Fannie Mae, Freddie Mac, Mortgage Bankers Association, and the National Association of Realtors all predict appreciation. Housing economic forecasts, Zillow, and certain hedge fund groups all predict depreciation.
Those are the national predictions. Let’s take a look at our local market numbers. The southwest Washington area inventory levels are down anywhere from 20% to 30%, dropping to the double digits. That means sellers will have very little competition in our market.
Year over year, pending sales are up significantly over the last five weeks. If we go by everything normal in business supply and demand, demand is sky-high and supply has stayed low, meaning that we could face issues with there not being enough homes on the market given the current buyer demand.
Now there is a caveat—in certain areas where protests have been occurring during this time of social unrest, there has been an influx of properties hitting the market. There, inventory levels aren’t a problem.
Nonetheless, it will be interesting to see how the rest of the year pans out. I believe we’ll finish out 2020 in a strong, appreciating market.
If you have any questions about real estate, never hesitate to reach out to us.