• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Live the Flagstaff Life

Live the Flagstaff Life

Flagstaff Lifestyle and Real Estate

  • Homepage
  • Blog
  • Flagstaff Events
  • Get Started
    • Buyers
    • Request a Buyer’s Guide
    • Request a Seller’s Guide
    • Instant Home Value
  • Vacation Rentals
  • About Me
    • An Interview With Katannya
    • Contact
    • Privacy Policy
    • Terms and Conditions

Have You Ever Seen a Housing Market Like This?

September 8, 2020 by Katannya Hartwell Leave a Comment

Share
Email
Share
Pin
Tweet

The year 2020 will certainly be one to remember, with new realities and norms that changed the way we live. This year’s real estate market is certainly no exception to that shift, with historic highlights continuing to break records and challenge what many thought possible in the housing market. Here’s a look at four key areas that are fundamentally defining the market this year.

Housing Market Recovery

The economy was intentionally put on pause this spring in response to the COVID-19 health crisis. Many aspects of the common real estate transaction were placed on hold at the same time. Thankfully, technology and innovation helped the industry power forward, and business gradually ramped back up as shelter-in-place orders were lifted.

The result? Total transformation of the market from rock-bottom lows to exceptional highs. Today, the housing recovery is being called truly remarkable by many experts and is far exceeding expectations. From pending home sales to purchase applications, buyers are back in business and homes are selling – fast.

According to the Housing Market Recovery Index by realtor.com, the market has surpassed pre-pandemic levels, and has regained the strength we remember from February of this year (See graph below):Have You Ever Seen a Housing Market Like This? | Simplifying The Market

Record-Breaking Mortgage Rates

Historically low mortgage rates are another 2020 game-changer. Today’s low rate is one of the big motivating factors bringing buyers back into the market. The average rate reached an all-time low on multiple occasions this year, and it continues to hover in record-low territory.

When rates are this low, buyers have a huge opportunity to get more for their money when purchasing a home, something many are eager to find while continuing to spend more time than expected at home this year, and likely beyond.

Continued Home Price Appreciation

One of the key drivers of home price appreciation this year is historically low inventory. Inventory was low going into the pandemic, and it is still sitting well below the level needed for a normal market. Although sellers are slowly making their way back into the game, buyers are scooping up homes faster than they’re coming up for sale.

This is a classic supply and demand scenario, forcing home prices to rise. Selling something when there is a higher demand for what is available naturally bumps up the price. If you’re ready to sell your house today, this may be the optimal time to make your move. As Bill Banfield, EVP of Capital Markets at Quicken Loans, notes:

“The pandemic has not stopped the consistent home price growth we have witnessed in recent years.” 

Increasing Affordability

Even as home prices continue to rise, affordability is working in favor of today’s homebuyers. According to many experts, rates this low are off-setting rising home prices, which increases buyer purchasing power – an opportunity not to be missed, especially if your family’s needs have changed. If you now need space for a home office, gym, virtual classroom, and more, it may be time to reconsider your current house.

According to Mortgage News Daily:

“Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged. This translates into nearly $32,000 more buying power.”

Bottom Line

With mortgage rates hitting historic lows, home prices appreciating, affordability rising, and the market recovering like no other, 2020 has been quite a year for real estate – perhaps one we’ve never seen before and may never see again. Let’s connect today if you’re ready to take advantage of this year’s record-breaking opportunities.

 

Filed Under: Real Estate Tagged With: Flagstaff Az Realtor, Flagstaff Realtor, Real Estate in Flagstaff Arizona, Real Estate in Flagstaff Az

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Stay Up To Date

Sign up to receive free market updates from Live the Flagstaff Life

Search

Footer

Katannya Hartwell
REALTOR®

Connect with me on:

  • Facebook
  • Instagram
  • Twitter
  • YouTube
  • The Kingswood
  • Flagstaff Golf Communities

Copyright © 2023 · Agent Focused Pro by Winning Agent · Log in

Village Land Shoppe | Privacy Policy | Terms of Conditions