“America was not built on fear. America was built on courage, on imagination and an unbeatable determination to do the job at hand.”
– President Harry S. Truman
March 18, 2020 – A number of people seem to assume that we are heading for a recession and that home prices will fall. The first assumption is quite reasonable. The second assumption is based on fear and has little analytical data to back it up. Obviously anything can happen in a uncertain and disrupted world, but a fall in home prices is still looking very unlikely from today’s numbers….
Total Listings Under Contract
Not declining at the moment Pending, UCB and CCBS listings were in line with 2018 as of last Saturday and 9.8% higher than this time last year. We are monitoring this figure closely for responses to current events and quarantines. Many of these properties had multiple offers on them when they went under contract; therefore, if they suffer a cancellation there’s a high likelihood another buyer will scoop them up and place them back into a pending status.
Not rising at the moment. Meanwhile supply has stopped declining, which is a relief for many buyers. This is another measure we are watching closely. A slow down in new listings combined with a slow down in new contracts does not mean a crash, it’s a holding pattern of sorts. Some sellers are waiting to list while others have gone temporarily off market. This will result in pent up supply that will be released when the “unknown” becomes “known”. Real estate is a slow moving beast. Unlike what some may think, prices do not turn on a dime and sometimes situations change back so quickly the market doesn’t even have a chance to respond to it one way or another. Current measures tell us demand is still much higher than supply and prices are projected to rise. Sign up for an event below to get briefed about other underlying market responses.
Here’s exactly what banks are offering to do to help Americans affected by coronavirus
Megan Leonhardt | Mar 20th | 2020
Tens of thousands of Americans are facing unemployment as the coronavirus pandemic continues to affect daily life for cities and towns across the U.S.
Being without a job or facing reduced hours at work can make it difficult to pay your bills, including credit card, loan and mortgage payments. But the good news is that many banks and financial companies have announced they are willing to work with customers impacted by the coronavirus though a number of programs, including fee waivers and payment deferrals.
CNBC Make It rounded up a list of what many major banks are offering to do for Americans affected by the current health crisis. If your bank or financial institution is not listed, you should still reach out directly to ask about what assistance it can provide. We will update this list as we receive more information.
Metro Phoenix’s Housing Market In A Coronavirus-Led Recession
By Catherine Reagor| March 22nd, 2020
Metro Phoenix’s housing market started 2020 so strong analysts said it would take a catastrophe to slow it. The coronavirus pandemic likely will push the U.S. and Arizona into a recession. The crisis hasn’t put the brakes on Valley home sales or pushed down prices so far, though this week’s unexpected uptick in mortgage rates likely won’t help.
When Buyers Pull Out, Others in Line Step Up So Far
Tina Tamboer, senior housing analyst with Cromford Report said some buyers recently have pulled out of Valley home sales, but there has been so much pent-up demand that the sellers had other offers lined up.
Pending home sales still are up 9% from last year, and the supply of houses for sale priced below $300,000 is flat but hasn’t climbed, according to Cromford.
“The stock market has been crashing for weeks, but we have only seen some pullback in the housing market, even for million-dollar homes,” Tamboer said.
“Remember in 2008, the stock market crashed because of real estate,” she said. “Real estate doesn’t crash because of the stock market.”
Open houses likely won’t be a big draw for many potential buyers because of health concerns, but virtual tours of homes are becoming more popular.