What to Expect in the Chandler Real Estate Market for 2020!

What to Expect in Chandler Real Estate Market for 2020

Hi, it’s Dave Larsen with West USA Realty. Happy New Year to you all. Hope everybody’s doing well out there and off to a good start in 2020. One of the things that I thought I’d try and get answered for everybody right off the bat, because it’s a question I get a lot at this time of year, is what do we expect in the real estate market for 2020. So I’ve got a little bit of information I’ll share with you that hopefully is helpful and answers that question for you.

First thing I’ll talk about is just the general overall economy right now. As we’ve heard again and again and again we do have incredibly low interest rates, and most people think they’re going to stay that way for most of the year. We’ve got several factors working in our favor on that count.

One is the national gross domestic product. How fast the economy is growing. It has been hovering around 2% or so for a little while, a little less a little more, but that’s not enough of a growth rate to cause interest rates to go up.

The other thing that’s an old saying but it’s very true, we’re in a presidential election year and during presidential election years usually rates are fairly stable. The powers to be do not want to upset the apple-cart and be accused of causing a change in power. Usually we’d anticipate rates to stay about the same. That’s great, because low interest rates always good for real estate.

The next thing you’ll talk about is a little bit on the wonky side but I think it’s really applicable right now. That is where the population demand is right now. We’ve heard about it for a long time that Millennials would be start buying homes, and we’re starting to really see that now, and it’s very easily explained by this graph which shows the various population bubbles we have we’ve had the 70 years. The Boomers, then the Gen-Xers, not really much of a bubble, and then right now we’ve got the Millennials out there buying. If you look at this graph and add 33 years or so, which is kind of the peak first-time home buyers historically, and certainly holding true right now. The peak of the Millennial bubble is right about 33 years ago so those guys and girls are all of the age where they’re starting to form families, and families are primarily still who’s buying houses. Because of this Millennial bubble, we’d expect the demand for homes to be pretty good based upon this population bubble that’s just now coming into their prime home buying years.  I’m certainly seeing it in my business, Millennials are a big part of our business right now. We’re going to have probably have very good demand over the course of the year.

Then last thing we always look at is supply. This is the most recent graph from our company statistics and it shows that right now we have about 12,500, give or take, homes available on the market in Phoenix which is a pretty low number for the number. We closed around 8,000 homes last month, that means there’s only about a month and a half supply of homes available for purchase right now and that’s low on the historic side. Typically we’d like to see, for a stable normal market, somewhere between four and six months supply of houses.

We have low interest rates, high demand for homes with the Millennial buyer bubble, and low supply. All those things should should spell a very good real estate market, meaning prices should continue to inch up over the course the year, as we’ve seen over the last few years.

I hope you found this helpful. If you’d like any of the graphs on any of this information, or any analysis of how it might affect you individually on your real estate purchases, just give me a call.

It’s Dave Larsen at 602-430-5755 or text me at the same number. Thank you so much for taking the time to watch this little video. bye bye now, and have a good 2020!

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