Latest Phoenix Housing Market Update From NAR Chief Economist, Lawrence Yun

NAR Chief Economist, Lawrence Yun is front and center when it comes to the economy, real estate, and the real estate market. When this guy speaks everyone (buyer, sellers, REALTORS) should listen.

Navigating the economy & housing market through COVID-19

• Pivot along a long economic and market trends
• Retail sales down. Home improvement spending up (are sellers ready to list)
• Mid & lower priced properties are in high demand
• REALTORs could expect multiple bids in certain price points
• Strategic time to list
• Buyers should lock in mortgage rates to avoid inflation
• Guide buyers and sellers with current data
• Sales will rise as lockdown is lifted
• Remain optimistic
• Rise in savings may increase spending
• Economic predictions: Low mortgage rates. Rising home sales 10-15%. Home prices growing 3-5%.
• Improvement is on the way

On June 25, 2020 @ 1:00 pm – 2:30 pm NAR Chief Economist, Lawrence Yun held a town hall for SAAR Realtors.

Here is his power point and my bold point personal notes …

PowerPoint – Lawren Yun Slides – Market Outlook – Phoenix az

NAR 2020 President – Vince Malta

• No Realtor Playbook for Pandemic. We are writing it as we go.
• Below 40% home ownership during the crash.
• Video to watch – https://www.nar.realtor/videos/bias-override-overcoming-barriers-to-fair-housing

Nar Chief Economist & Senior Vice President of Research – Lawrence Yun

• Many jobs temporarily furlough.
• March 15 – June 6 = 45 million lost jobs – 21 million receiving unemployment. Miss leading.
• Worst case job loss over in the State of Arizona. For Realtors it is a disruption in business.
• Possibility mortgage rates might go lower.
• Low inventory, no subprime lending.
• Mortgage applications up 20% since June last year.
• 1 mortgage application. 2 pending. 3 closings. We are out 2-3 months.
• Bad news – federal budget deficit. Who is buying this dept? $4 trillion in 2020
• Keep printing money and it will affect us 5-7 years down the road as in a weak dollar.
• Lock in a low rate mortgage it will not increase.
• It should take off early 2021. + numbers throughout.
• The worst Is over.
• International buyer/seller will be tough because of travel and huge number increase.
• College towns could take a hit because many foreign students.
• Top 5% (Luxury) market might need a price reduction.
• Mid-Market prices are rising, multiple offers, etc.
• Builders not coming back to the market. Permits are expensive. Lack of construction workers.
• Jumbo loans – not really loosen up.
• Short term rental – is a local issue not national.

Tell us your thoughts by commenting below… If you are looking to buy or sell in Phoenix, Scottsdale, Tempe, or throughout Maricopa & Pinal County lets partner up and find you your forever home or investment. If your selling let’s talk!