Real Estate

THE STATE OF REAL ESTATE By John Cabezas with LIV AZ Realty Bottom line: sales seem to be holding

Wow! Not three months ago foreseeable future. the state of Arizona real estate was a whole different A LOOK AT LENDING picture. In January we were talking Here is where we are seeing the most about a small uptick in interest rates challenges. We hear from lenders and a strong new home construction. that changes are almost daily. That Builders had waiting lists for homes many funding sources are pulling and were often 12 to 18 months out on out of mortgage lending. That nonthe build. There was also a very strong conforming loans (self-employed, pre-owned home market, and very low low-FICO, etc.) are almost impossible inventory of pre-owned homes. We’d to get. been in a sellers’ market for some time. The economy was humming along, the requirements increasing, and seller stock market was hitting new highs, concessions are frowned upon or not and the unemployment rate was at permitted. historically low levels. So low, in fact, subsequent pandemic has changed economic loss to this nation if that is

SALES AS OF MID-APRIL

Though people say the numbers are slowing down, Empire West Title, our preferred title company, had a record breaking March 2020, and April seems to be coming in strong. New listings are coming online every day, and homes are still getting multiple offers. Granted not in every price range, the sweet spot is in the $200’s to $300’s. Inventory is still low, and if a home comes on the market, and is priced right, it sells quickly, sometimes with multiple offers. well, and appear that they will for the We’ve heard of the FICO score that many positions went unfilled due We are hearing different things from to lack of candidates. different lenders; of course, it all depends on who their funding sources Fast forward to today. are, as each source has their own The COVID-19 outbreak and criteria is a moving target. everything. We now know that we We’ve also learned that due to the may have to continue staying home huge unemployment rate we are and practicing social distancing until currently experiencing due to the June, maybe even July. At least that’s COVID-19 pandemic, lenders are the consensus as of the writing of verifying employment one to three this article. I certainly hope they are days before close of escrow; it used to wrong. I can’t image the social and be 10 days. true. It’s already been hard; I can’t The bottom line is that the state of real imagine another two months. estate in Arizona is strong, and 85028 But, life goes on, and so must we. only issue is lending, and trust me, Here is a snapshot of the current state the lenders will find a way to make it of real estate in Arizona. work.

criteria. It would seems that lately that and 85032 are still selling strong. The A Cuban born immigrant and businessman, John spent 25 years as an executive in corporate America, has co-written a real estate ‘How To’ book, is a three-time guest on Real Estate Matters (960AM) Talk Show and is currently a partner and Realtor at LIV AZ Realty. In his 20 years as a Realtor, John has been involved in major remodel and renovation projects throughout the valley. View his real estate blog at livazrealty.com.

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