Home values are something buyers are wondering about right now. Learn what might be in store for the Door County real estate market. Search all the Door County listings at www.HomeInDoorCounty.com
Will Home Values Appreciate or Depreciate in 2020?
The Door County housing market might be stalled a bit due to the heath crisis the country is currently facing, so naturally some home buyers are questioning whether property values will be impacted, and some predicting a lack of sales, lower prices, and super-motivated sellers. Let’s see…
Supply and Demand
The price of any item is determined by the current supply as well as the market’s demand for that item. It doesn’t matter if the item is face masks, paper toweling, dog food, or real estate.
Every month the National Association of Realtors surveys 50,000 real estate practitioners about their expectations for home sales, prices, and the market conditions. The survey is complied in the Realtor’s Confidence Index. Let’s see what the recent survey said and then how that might relate to Door County.
Buyer Demand for Homes
Take look at the map. The dark blue areas indicate a strong demand for homes in that area. Wisconsin falls in that dark blue area, and I would say Door County would remain in the dark blue. Of the 50 states an amazing 34 of the 50 states have strong buyer demand, and 16 have a stable market.
On this map the dark blue (Alaska) shows strong seller traffic (plenty of listings). The light blue (Wyoming, Louisiana, Virginia) reported stable seller traffic (a normal amount of listings). The gray (the rest of the state), report weak seller traffic (a lack of needed listings). The lack of seller traffic means there are not enough homes on the market to satisfy the needs of buyers looking for homes at this time. In Door County too there are segments of the market in both homes and condominium homes that have a lack of inventory. Many Door County Realtors report they have buyers ready to buy—if only there were homes or condos on the market to buy. To learn more about those market segments email me here, or give me a call at 920-493-5472. With demand greater than supply, home values should not see depreciation.
What the Experts Say
“We note that inventory as a percent of households sits at the lowest level ever, something we believe will limit the overall degree of home price pressure through this year”. —Ivy Zelman
“Housing supply remains at historically low levels, so house price growth is likely to slow, but it’s not likely to go negative”. —Mark Femming, Chief Economist First American
“Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand.” —Freddie Mac
Looking at the maps, the Door County real estate statistics, and listening to the experts, it seems that prices will remain stable throughout 2020. If you are thinking about listing your Door County property at this time, call me at 920-493-5472 and let’s connect to discuss how you can capitalize on the somewhat surprising demand in the real estate market now.
What to check out what’s on the market in Door County today? Visit Door County Listings by Location and search ALL the Door County listings by your favorite town or village, price, and property type.