As you all know in Arizona we are in a sellers market, high demand, low inventory, raising prices have been the tone of the market. This has been driven by super low rates, people moving from states with low income, high cost of living, and being over taxed, looking for a more balanced place to live like Surprise, AZ.
Experts are looking at the final months of 2020, They are starting to give us market predictions for the next 12 months, and we hope for the best for buyers, and sellers. Most experts are relying on simple supply and demand to give us an idea of where the market is going.
Due to the overwhelming undersupply of homes in some price ranges on the market today, there is a push up on prices. A buyer looking for a home around $350,000 and under are faced with a lot of buyer competition. Home sellers are choosing between multiple offers, and these bidding war style offers are driving prices up!
Experts don't see this letting up anytime soon. Looking at rates, do you think this will continue if rates go to 4.5%?
Will home delinquencies drive homes into foreclosure than drive prices down?
Zillow is the most optimistic about home price appreciation at 7%, then Zelman 5.9%, Freddie Mac 5.5%, Nar 4.3%.
Some are concerned that homeowners who entered a mortgage forbearance plan might face foreclosure once their plan ends. However, when you analyze the data on those in forbearance, it’s clear the actual level of risk is quite low.
Ivy Zelman, CEO of Zelman & Associates said “The likelihood of us having a foreclosure crisis again is about zero percent.”
The experts believe that high demand and low inventory will continue on, watch rates, this is a big deal.