Some potential purchasers and sellers are questioning whether home values will be impacted. The price of any item is determined by supply as well as the market’s demand for that item. Each month the National Association of Realtors (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for the REALTORS Confidence Index. Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand) during this pandemic. Buyer DemandWhat is the buyer traffic in our area?The darker the blue, the stronger the demand for homes is in that area. The survey shows NJ state has a ‘stable’ demand. Seller SupplyWhat is the seller traffic in our area? As the map above indicates, NJ reported ‘weak’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the needs of buyers looking for homes right now. With demand still stronger than supply, home values should not depreciate. What are the experts saying?Here are the thoughts of three industry experts on the subject:Ivy Zelman:“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 the year.”Mark Fleming, Chief Economist, First American:“Housing supply remains at historically low levels, so house price growth is likely to slow, but it’s not likely to go negative.”Freddie Mac:“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.”Bottom LineLooking at the maps and listening to the experts, it seems that prices will remain stable throughout 2020. If you’re thinking about selling your home, let’s connect to discuss how you can capitalize on the somewhat surprising demand in the market now.