Covid-19’s Impact on Arizona Real Estate
Hey Everyone, Elise Fay here—hope you are all doing well and taking care of one another. Concerns about the global impact Covid-19 will have on the economy are real. And they’re scary, as the health and wellness or our families, friends and loved ones are high on everyone’s emotional radar. That said, we can be confident that, while we don’t know the exact impact the virus will have on the housing market, we do know that housing isn’t the driver.
The reasons we move: marriage, children, job changes, retirement etc—are still part of our lives. As a result we are still open for business!
Let me share with you a few facts from yours truly, based upon what we are seeing, boots on the ground. Since March 15th, 2020:
-4040 homes were put under contract.
-3233 NEW listings were added to the market
-3481 homes successfully closed in Maricopa County—those are buyers and sellers who sold their homes and went thru with the sale despite the Corona Virus effect.
Personally, our team has put 19 deals under contract, 25 deals have closed. So if you think these numbers look promising but you are still scratching your head…Here is the how and why. It still goes back to Supply and Demand.
We still have a lack of sellers. Low supply of homes is the result of several factors—I will share with you a few of them.
-New Builds: we have half the number of new builds to the market than we did in the early 2000’s and this is due to labor shortages, some gov’t regulations and in most cases, not enough available land.
-During the last recovery we saw savvy investors and some of the larger institutional investors buy up a lot of homes that were in short sale or foreclosure. These investors were building up their portfolios and had plans to either sell on the upside or hold them as rentals. Well with rents on the rise, as a result of the short supply of sellers, these landlords are NOT selling and instead holding on tight to their investments. Being a landlord IS profitable right now!
-Empty nesters who weathered the downturn in the market years back, are now keeping their homes on average about 13 years—some are still a bit frozen, unable to unlock all their equity. Let’s not forget the HGTV effect that we are seeing on some of these older and dated properties.
Right now, we are seeing that demand is being dampened by the Corona outbreak and as a result we are seeing that inventory is loosening up, making more homes available and in some price ranges, lessening the competition a bit. We are seeing this in the market space where millennials may be entering for the 1st time. Interest rates are still at an all-time low, making owning a home cheaper than renting. Lending guidelines have tightened up a bit but that is another level of protection that has been put in place.
We have a crazy new normal. We are out showing homes, taking greater precautions; we wear gloves, carry hand sanitizer and retain a safe distance. We also have protocols in place to protect our sellers. In Arizona, housing is a huge economic driver for our economy—I am not here to sugar coat anything but just want to let you know that we are not seeing doom and gloom at this point.
-As we move into 2020 there are currently 12,742 active listings or homes for sale in our marketplace.
Don’t let selling your home during the Holiday season dampen your spirit. Create a buyer-friendly home with my Top 5 seasonal home staging tips:
Would you like an offer on your home while skipping the headaches and hassles of selling traditionally? There’s a record amount of capital looking for a place to rest. Companies are ready to make a very competitive offer on your home. They buy it, turn it around, and sell 30-90 days to the public for a tiny profit. You get convenience and speed in return!
Are you a first-time homeowner feeling more than a little confused about what you need to focus on during the first year of your home owning experience? Have you just bought a home for the first time in a long time and need a refresher on what this first year might bring? Either way, you’re in the right place! Despite sometimes being overwhelming, buying a home is an exciting experience! Once you are handed the keys to your new house, you may find yourself at a loss for what to do next. Should you dive right into remodeling? Should you save money? Below, are a few of my tips for the first year of homeownership, whether this is your first experience or you’re a pro:
There are different valuations of a home’s worth and you should understand the difference between market value and assessed value. It’s important to understand what your home is worth. Knowing your homes value gives you an idea of how much you could receive if you sold the property. It also plays a part in determining how much property tax you’ll be required to pay.
When preparing your home for sale, I may recommend to replace your old appliances with new ones to increase the selling value of your home. Or you may have just bought a home with old appliances and you replaced them, but what’s the best way to dispose of your old appliances?
For many people, selling their home is an emotional process. Many people have lived in their homes for years creating memories. Others may be facing unwanted, yet necessary moves. Even sellers preparing for a voluntary and desired move are likely to face some feelings of attachment that can threaten to interfere with the sale process. Despite the difficulty, emotionally detaching yourself from your property before listing it is the first step in ensuring a smooth sale.
To get your house ready for its first showing, expand the appearance of your smaller rooms with these tips. Here are some of my favorite low-cost tips and tricks you can use to make your home look bigger.
Whether you’re thinking of buying or selling a home, choosing the right realtor can make a huge difference. Although you don’t technically have to have a realtor to do either one of these things, it can be very beneficial to have the help of someone who is trained and educated in all the ins and outs of the buying and selling processes. With the tips listed below, you should have no trouble finding the perfect realtor for whichever stage of the home owning process you may be experiencing now.
