Current State of the Real Estate Market in Phoenix, Arizona

real estate market
While Metro Phoenix has traditionally done well when faced with uneconomic uncertainties not caused by the properties market, this doesn’t mean the same will hold for COVID-19.

It’s estimated that the COVID-19 may to a certain point have an impact on the Valley’s property market. The last few weeks have seen listings climb by as much as 20%. All signs point towards homeowners facing financial challenges looking for ways to enable them to offset their mortgage payments. Another reason for this is attributable to short-term rental owners lacking clients to sell to.

According to Tina Tamboer, an Arizona Housing expert, compared to a similar time last year, the total houses available for sale at this moment are fewer by 32%. Keeping this in mind, many economists and experts are predicting the property markets will continue hunkering down for the coming weeks.

The pandemic has meant people aren’t relocating, which means no one is looking to sell house fast for cash Phoenix. And while the strong population growth in Phoenix has continued to drive the real estate market, this is going to slow down until the coronavirus crisis comes to an end.

Current Housing Information and Data Trends

real estate marketInitial statements indicate there was an increase in home sales and closing prices in March this year. However, these indicators are lagging considering these are deals that were closed 30 days before local and state authorities started instituting the shutdowns.

So far, the pending sales tracked by experts in the listing sector show there’s a likelihood the average closing price for March could be as high as $301,000.

Additional indicators on how the market has responded to this global pandemic include:

  • The demand for new homes continues to fall with the trend expected to continue into the third quarter of 2020
  • Many buyers who rely on technology to provide instant home offers are no longer buying homes. This is largely due to the uncertainty caused by the economic and health crisis.
  • Short-term and Airbnb owners who are lacking customers due to the crisis have opted to offload their Valley properties.
  • Interested buyers continue to look at potential home buys thanks to the availability of virtual tours.
  • Title agencies have started offering drive-through services aimed at helping homebuyers close a sale.
  • Many are optimistic this fall-off is a temporary occurrence and believe the housing market will start to level off as the fourth quarter approaches. The first quarter of 2021 is likely to experience an upward burst.