You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur. FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU. Call me if you want to sell your property and need an estimated value. Phone: 480-948-5554 Prefer cell: 520-975-5207 or email me walterunger@ccim.net.
CLICK HERE TO VIEW ALL MY 60 MIL WORTH OF LISTINGS.
https://www.crexi.com/properties?searchBrokerId=17513
NAR June 25, 2020 Melissa Dittmann Tracey
The housing market is recovering much faster than most other sectors in the economy in the current recession. But will it last?
Unemployment remains high—at around 13%—and economic forecasters predict unemployment likely will remain elevated for the remainder of the year. However, economists believe housing will be able to weather most of the economic storm.
The current housing shortage and homeowners’ strong equity positions will likely rescue real estate from any downturn that would be similar in scope to the 2008 financial crisis, economists said during the “Economic Outlook and Housing Trends” webinar Wednesday, hosted by Freddie Mac and the Down Payment Resource.
“Real estate demand has staged a remarkable comeback, and given the chronic supply shortage, the rebound in demand should provide support to home prices,” said Sam Khater, Freddie Mac’s chief economist.
So far, data suggests the economy hit its low point during the first two weeks in April and has been steadily improving since. Still, the economy is significantly below its pre-March levels when the COVID-19 outbreak took hold in the U.S. While real estate demand declined at similar rates to the broader economy, the housing market is making a much more pronounced recovery than most other segments of the economy, Khater said.
This Isn’t the 2008 Crisis
“The housing market has held up much better than expected,” Laurie Goodman, co-director of the Housing Finance Policy Center at Urban Institute, said during the webinar. “Homeowners have been much less affected by COVID-19 than renters.”
A big reason for that is because the housing market has been underbuilding and unable to keep up with population demand since 2009, Goodman said. The country is undersupplied by an estimated 2.5 million housing units. “The supply-and-demand imbalance is continuing to put upward pressure on home prices and is causing them to rise,” Goodman added.
Further, owners have accumulated a great deal of equity in their homes over the last decade—and still-rising home prices are only adding to that. “This has given the housing market a resiliency that it didn’t have back in the 2008 financial crisis,” Goodman said.
Deferred Sales Unleashed, But for How Long?
In recent weeks, mortgage applications for home purchases have posted a strong rebound, even surpassing levels well beyond what they were a year ago. Record low mortgage rates are enticing buyers who had been waiting on the sidelines prior to the pandemic to make a move as well as motivating renters, Khater said.
“It’s remarkable that in the last recession it took us 10 years to reach normal levels” again with purchase mortgage applications, Khater said. “In this recession, it took us less than 10 weeks.”
However, Khater cautioned that mortgage applications for home purchases will likely moderate after this current “bulge in deferred sales” subsides.
“The economic recovery is underway, but uncertainty is very high,” Khater said. Federal stimulus programs will expire in the coming weeks. “Stimulus is flowing through and sustaining consumer spending and balance sheets for now, but there is concern that a fiscal cliff is just around the corner and may put the brake on recovery,” he said.
Here are some additional housing indicators highlighted at Wednesday’s webinar:
Home prices stand firm. Home prices are rising, but growth is expected to moderate over this year and next. However, economists are not predicting any declines in home prices. The National Association of REALTORS® is projecting home prices to be up about 4% in 2020 and 2021; CoreLogic and Freddie Mac’s forecasts are more subdued but still have home prices rising at about 2.5% in 2020 and 2021. So far, home prices have not gone down during the pandemic and actually have increased. “This really speaks to the lack of inventory on the market,” Khater said. “It’s still a seller’s market—even in the worst recession since World War II.”
Personal income is rising. Despite surging unemployment numbers, incomes are rising. Personal income increased to a record $2 trillion in April. But that rise was entirely driven by the economic stimulus from the federal government, Khater said. “Money is flowing into the economy and supporting customers, but in July there could be a fiscal cliff,” Khater says. “The concern is that that the stimulus supported consumer spending, but that could go down again when it expires.”
Foreclosure wave unlikely. Khater does not anticipate a large uptick in foreclosures in 2020 or 2021. “Homeowners have record equity, home prices continue to rise, and there’s federal forbearance support,” Khater said. “Homeowners—at least so far—seem to be much less impacted by the recession.”
Some populations are being hit harder than others. Khater pointed to data that showed Hispanics and Asian populations in the U.S. have seen the largest declines in employment during the current recession. Their declines have been four times larger than the last recession. “There are longer-term concerns around the recession’s impact on inequality,” Khater said.
FROM ME: Now is the time, if you are thinking of selling or purchasing your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County, Pinal County, Arizona / Office / Retail / Industrial / Multi-family / please call me on my cell 520-975-5207 or e-mail me walterunger@ccim.net. Investors and Owner / Users need to really know the market today before making a move. The market has a lot of moving parts. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands your needs. I am marketing my listings on Costar, Loop-net, CCIM, CREXi, Catylist, and various other web sites. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international. Click here to find out what is a CCIM: https://en.wikipedia.org/wiki/CCIM
CLICK HERE TO VIEW ALL MY 60 MIL WORTH OF LISTINGS.
https://www.crexi.com/properties?searchBrokerId=17513
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
History of Arizona from 900 BC – 2017 -Timeline.
History of Arizona from 900 BC – 2017 -Timeline.
History of Arizona from 900 BC – 2017 -Timeline.
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
Timeline of Phoenix, Arizona history
Facts of Arizona – year 1848 to 2013
CLICK HERE: Arizona Opportunity Zones As We Understand /maps. Interested!!! Please contact me.
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU PLEASE CALL ME
CLICK HERE TO VIEW ALL MY 60 MIL WORTH OF LISTINGS.
https://www.crexi.com/properties?searchBrokerId=17513
Also Call me if you need an estimated value of your Property.
Call me if you want to see a map with what is in the Construction Pipeline for Apartments.
Prefer cell: 520-975-5207, or email me walterunger@ccim.net. CLICK HERE TO VIEW ALL MY LISTINGS.
Check out my professional profile and connect with me on LinkedIn.
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
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