Arizona market statistics

Most housing markets all over the country are a mess. Furthermore, that is the least we can say, thanks to the Corona pandemic. This is the time when real estate activities are usually heightened. Around this time, I would be doing an open house in our beautiful state, but am forced to stay at home. The pandemic has brought the housing market back to the levels of the Great Recession and is wiping billions in potential sales and commissions for the real estate professionals.

According to the most recent data by Zilliow Group Inc, it is very clear that the pandemic is responsible for the reversal of what was shaping up to be a banner year for the real estate sector. As of April 5, daily new listings continued to drop, reaching 27% nationally from where they were around this time last year. It gets worse in some of the nation’s strongest and largest housing markets, such as San Francisco and New York, which have seen drops of 36.4% and 56.6%, respectively.

While the country is in a mess, Phoenix seems to be rising above the pandemic, only being affected slightly. New listing as of April 5 showed a lesser than 1% drop compared to the same period last year. However, where the Phoenix market seemed comparable with what was happening around the country was in the total active listings, which were down 26.7% compared with a year earlier. The good news is that the active inventory in the Phoenix housing market in April was a significant improvement for the Valley from March by about 1,500 homes. The inventory stats as of March 1 were down by nearly 33%. However, it is not all rosy, and we should not get comfortable, according to analysts and industry experts polled by Business Journal, who says that it is likely that the Phoenix housing market will slip but not for long though, as it will start to recover later in the year.

What is happening all around the country has immediate implications for thousands of real estate professionals all around the country who very much depend on the spring season for their annual compensations. The Business Journal estimates that nationally, there will be a drop in home listings which could equate to as much as $81 million in lost sale commissions per day for the real estate brokers, with some of the major metro areas such as New York ($14 million per day) Los Angeles ($4.8 million) and Chicago($3.8 million) topping the list with the most stake.

Nonetheless, the agents in Phoenix are likely to far better than agents in other parts of the country. Their projected loss per day in commission as n industry is $53,572.

Some cities are reported to experience delays in home closings, and problems with real estate

appraisers where most of them are starting to down appraisal appointments, this is yet to be reported in Arizona, in fact, here business is as usual. Most of the home loans and purchase contracts are contingent on the home appraising. This could potentially put a stiff backlog on the refinancing and purchasing a home with a loan in the states that are hit harder with the virus. The National Associational of Realtors anticipated ;

The National Association of Home Builders also reported;

“The Fed’s action was expected but perhaps not to this degree and timing. And the policy change was consistent with recent declines for interest rates in the bond market. These declines should push mortgage interest rates closer to a low 3% average for the 30-year fixed-rate mortgage.” The spring season is important, not just for the real estate professionals but also for the economy. The spring can account for as much as half of the annual compensation doled out to the brokers, listing agents, and the various real estate stakeholders according to data by Zillow and US Census Bureau. More heartbreaking is the fact that the prognosis for a near-term recovery does not look so great. According to Moody’s Investors Service, the housing outlook home sales were projected to fall about 25% below the year’s target.

“The spring home-buying season will be marked with few open houses and risks are rising that the early portion of the summer home-buying season will be uncharacteristically poor,” wrote Moody’s economist Brent Campbell.

While the real estate markets in most parts of the country are doing so much to survive this pandemic, the Phoenix market seems to be doing

just fine, but the question is, for how long? How long will it take for the pandemic to catch up with the phoenix housing market? Well, honestly, I do not want to find out, but even if it does, the effects will not be long-lasting as projected in most other states. This means that you have a very rare opportunity to get yourself a home in Phoenix or sell. Who knows what the next couple of months will be like? When buying or selling, you would want to work with an expert who knows their area well, and when it comes to the Arizona housing market, I am your go-to person. M y name is Peggie Simmons. I have 34 years’ experience as a real estate agent and broker in Tempe, Arizona, and currently serves as the Founder and CEO of Realty Marketing Group specializing in relocation, new homes sales, traditional homes, marketing & sales, short sale negotiations, foreclosures, luxury rentals, investments among many others. Despite doing my business in Arizona, I have been a resident of the state since 1983 which makes me an ideal choice and your go-to real estate agent. Go ahead and take advantage of the situation right now while it still lasts. Give me a call today and let me get you in your dream home, or go to https:// thepowerisnow.com/vipagentsservices/peggiesimmons-arizona/ to find out more.

https://www.bizjournals.com/phoenix/news/2020/04/10/ phoenix-housing-market-more-stable-for-now-as.html https://www.scottschulte.com/blog/2020-coronavirusaffects-real-estate-arizona/ https://www.mountainparkranchrealestate.com/phoenixreal-estate-market-report-march-2020/