I listened to an update on our economy by Dr. Lawrence Yun, Chief Economist for the National Association of REALTORS®. He stated: “Homes sales are down in the second quarter but are expected to rebound in the third and fourth quarters.” Arizona is the fastest growing state in the Country.
This is nothing like what occurred in 2008 and 2009. Foreclosures will be very minimal as we have had an under supply of homes prior to the pandemic and more so now since the pandemic. However, the luxury market has been hindered due to the stock market. The jumbo market is not functioning well as there is no backing by Freddie or Fannie. Sellers and buyers will reappear as the economy opens. For now you will see the jumbo market softening.
The mortgage rates are tied to the 10 year treasury. We have experienced great low rates and it is predicted we will see the best rates in years, 2.8% to 2.9%.
Prices are not moving downward and there is no indication of any oversupply any time soon. No panic by sellers as they are holding firm. Buyers surveyed do not believe prices will go lower.
Dr Yun stated that the forecast is uncertain but he sees in 2021:
GDP Growth +3%
Job Gains +2 million
Home Price Growth 2% to 4%
Home Sales +8% to 12%