Cactus League Vacation Rentals: How coronavirus is affecting home buyers and sellers

Tuesday, April 21, 2020

How coronavirus is affecting home buyers and sellers

Friends and Clients —

I want to give you a balanced update on the Phoenix real estate situation.

Of course, there's the elephant in the room:

The coronavirus pandemic has had a massive effect on the entire economy, and that includes the real estate market.

Health concerns and rules about social distancing have led some sellers to withdraw their homes from the market, and fewer buyers to schedule showings.

The recent volatility in the stock market is causing additional trouble.

And perhaps most importantly, there is the uncertainty about the future as the coronavirus situation plays out day by day.

That's the bad news.

The good news is that we are collectively beginning to adapt to this unprecedented situation in some encouraging ways.

In the real estate market, many agents are starting to offer virtual showings to reduce person-to-person contact.

This allows buyers to make a more informed decision about the property and whether to get out and go see it.

Showings are still going on, just with much higher regard to safety and proper social distancing.

And yes, even if we can't shake hands on it, homes around Phoenix are still being sold.

In fact, some buyers are more eager to buy now than ever. That might sound surprising, but it's simple economics.

The 30-year fixed mortgage rate recently hit 3.29%, the lowest on record since tracking started almost 50 years ago. This kind of low mortgage rate can take tens of thousands of dollars off the effective price of a property, once interest payments are factored in.

The massive government stimulus package has given many people hope that the economic impact of coronavirus will be contained.

Finally, once we emerge from this situation, there is reason for optimism.

Unlike previous drops in home sales, like during the subprime mortgage crisis, this is not expected to last nearly as long. Demand for housing was especially strong before the coronavirus hit, and much of this demand is still there.

What is undeniable is that we are in a unique situation, and rules are changing each day.

If I can help you in any way — whether with real estate advice or with anything else — give me a call at 602-413-8195 at any time. If the current situation is showing us anything, it's that we need to work to help each other however we can, and so I want you to know I'm here for you.

Sincerely,

Monique Walker
RE/MAX Excalibur