Home Values in Arizona are rising fast, will the market correct? Will home mortgage rates change? Experts are saying yes, but looking at the chart below it won't be anytime soon. Unless something unforeseen happens again. Typically Arizona is a Move to state, and according to studies people are moving from Places like California, Texas, Chicago, Seattle, etc. to Arizona. This helps home values in Arizona
The thing to watch (maybe an unforeseen) that can possibly negatively affect future home prices is the outcome of the underlaying homes that are currently in forbearance. Arizona has shown some interesting numbers. Hopefully people stop the mortgage forbearance before they are in a negative equity situation and sell to keep from losing the house, and hopefully not just walking away. The good thing is forbearance is helping a lot of people stay in there homes right now. Time to get back on there feet, and catch up, or downsize and get back in a positive financial situation month to month.
March 31st the governor of Arizona issued an executive order for all people lock down and stay home. Many were worried about what that would mean for home prices in Arizona. After years of Arizona homes gaining value at a somewhat healthy rate, would 2020 be the year that the appreciation trend would stop? Or go down?
Back when the shutdowns and lockdowns started, forecasters modeled this uncertainty, and Zelman & Associates modeled home values going up 3% and CoreLogic had values depreciating 6%.
However, as 2020 unfolded, it became clear that there would be very little negative impact on the AZ housing market. As Chief Economist at First American, Mark Fleming, recently noted:
“The only major industry to display immunity to the economic impacts of the coronavirus is the housing market.”
Have Arizona prices continued to go up so far this year?
The Federal Housing Finance Agency recently released its latest Home Price Index. The report noted that home prices actually rose 6.5% from the same time last year. FHFA also noted that price appreciation accelerated to record levels over the 2020 summer months:
“Between May & July 2020, national prices increased by over 2%, which represents the largest two-month price increase observed since the start of the index in 1991.”
Check out the financial experts forecasting for home prices going forward?
Take a look at the graph of Home projections next year. Most are showing Appreciation, let's hope they are figuring in forbearance.
The chart shows home values have weathered the storm of the pandemic so far. Let’s connect if you want to know what your home is currently worth and how that may enable you to make a move this year.
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