Greetings from a very different Valley of the Sun right now. Even though temperatures have already climbed into the 100’s, I’m not hearing too many complaints because there is a prevalent belief/hope that sunlight and heat will destroy the virus. I personally hope there is some truth to that notion.
The research group from the National Association of REALTORS® completed a survey of its members in late April on the “economic pulse” of real estate. It asked questions about changes in buyer and seller behavior due to COVID-19. Not to get too bogged down in percentages and data, but here are a few snippets of interest:
– 44% of responding agents reported that buyers are delaying their home purchase for a couple of months.
– 22% reported that buyers stopped looking due to concerns over losing their job.
– The majority of buyers are expecting a decline in the price of homes.
Not surprisingly on the seller’s side, more than 50% of agents reported that sellers are holding off listing their house for sale. But what is most interesting here is that, even with a dropoff in buyer activity and intent, most sellers are not lowering the asking price of their home.
This was a national survey, but I’m clearly seeing the same trends here. In the “hot” price range of under $500,000 here in the valley, homes are selling quickly and at very close to listing price. The luxury market continues to be its own beast, with a relatively ample amount of inventory available.
Once Arizona is no longer a “stay at home” state and the economy gradually reopens, will we see a spike in real estate activity? It’s possible. How quickly those sellers and buyers who were holding off will jump back into the market remains to be seen. Stable employment will certainly be a factor. I don’t see the trend of folks moving here from places such as Washington and California losing any steam, though. In fact, the migration could accelerate.
In an email this past week from Fletcher Wilcox, founder of the Wilcox Report and one of the most respected real estate authorities in Arizona, Wilcox stated that prior to the coronavirus storm, Arizona and Maricopa County had some of the best numbers in the country for population and personal income growth. In his own words: “Once the Coronavirus storm is past Arizona and Maricopa County should boom once again!” (post from The Wilcox Report, April 30, 2020)
As always, the purchase or sale of real estate is a huge financial transaction that most people find highly stressful. And as always, I’m here to take that load off of you or anyone you know who might need some professional real estate assistance.
At your service,