Has the coronavirus or COVID-19 put the real estate market in the ICU?
The coronavirus or COVID-19 has taken everyone by surprise and the effects of this pandemic will not be totally understood for months or years to come. However, we can see the effects of this virus on Phoenix real estate in the past month, and where things will go in the next 30 – 45 days. To understand the cumulative effects and future path, keep reading.
Phoenix real estate in the midst of the Coronavirus or COVID-19
With layoffs , rising unemployment and state mandated stay at home orders, there has been a reduction of the number of buyers. Some buyers may welcome this since there were not enough homes for sale to choose from in what has been a low inventory market. What other affects have we seen due to the virus. Watch the video below to find out.
In the short term, properties under contract has decreased since mid-march which means we’ll see fewer sales in April and May due to COVID-19 and the reduced buyer pool. The other interesting fact is that listings or homes for sale had been decreasing during the first quarter. Many cities and towns then saw an increase in listings around mid-march that corresponded with the sudden pivot in the number of listings under contract.
The long term effect will be mostly dependent on the resilience of the buyers coming out of this pandemic. Will it be a “V” recovery, or more of a “U” effect or at worst case a “L” situation. Right now any theory seems to be unfounded speculation since it is hard for the experts to even accurately predict the coronavirus spread, cases and death forecasts.
For an update on the market in light of the this pandemic, please don’t hesitate to reach out to me.