Important Update on the Arizona Housing market mid Coronavirus.
Hi Its Jay Bru here, hope everybody is safe and life hasn’t been disrupted too much, I’d like to hear your stories, please reach out. I’ve really been studying the numbers, graphs and of course watching the depressing fear based news like most. I’ve been ok, just a lot trips to the fridge and missing the office and gym.
Please read these quick facts and watch the video for the complete slideshow and explanations. But let’s start by saying it’s too early to completely tell what will happen to the long term Arizona housing market, this is a snap shot of what’s going on now. The president gave his speech as I was writing this about the reopening, listen to it here which gives us hope that there is an end. Also, Arizona and Doug Ducey have been doing a great job at protecting us with little infection rates and AZ is a well run state. These factors along with some positive Real Estate news may set some ease into us all. Unfortunately there are 22 million Americans unemployed and bankruptcy’s looming ahead for some with an invisible enemy in the air.
It seems we’ve been through a lot, and I am so sorry if you’ve been affected in any way but there’s been good news as of late. From doing so many webinars with Real estate experts, reading, and putting the video together, I feel a lot better about living in Arizona and am not as fearful from a housing collapse at this moment, please watch my video that has all of the charts, here. (But anything can change daily). Here is an updated Opening up America video here. We have a plan for getting back to work, AZ still has good stat numbers, and looks like were getting back to normal sooner than later. I’m planning on May 1st for everything to semi normal.
Quick facts about the Phoenix metro area market:
- Still in a Sellers market currently and demand is still here, some patiently.
- Rental Rates as of April 2020 still holding its own at $1.01/sqft up 7.4% from a year ago.
- Accepted Contracts to back on market properties have takin a hit. Buyers are backing out of contracts.
- All price ranges average at $187/sf which is still very high.
- Active Listings for sale are down 23.1% from a year ago. WOW
- Contracts/sales have been down last few weeks with buyers waiting.
- Recession looming but does not = housing crash.
- Dow Jones Industrial in 4.5 weeks dropped 22,000 points which can disrupt our economy.
- This is not similar to 2007 housing crash, better loans and banking methods are in place now.
- Inventory today is 3.1 months compared to 2007 which was 8.2 months of supply. A neutral market is more at 6-7 months. Supply increased 31% in past 4 weeks though.
- 53.8% of home owners have over 50% equity in their homes.
- Unemployment rates and home sales do not have a direct relationship.
- Home prices have increased 3 of the last 5 recessions.
- Rental supply +15% in March.
- Owning an Airbnb seemed like a good idea at the time, right?
- Cromford report index still says a sellers market.
- Listings under contract -24% from last year on April 9th 2019.
- Sellers can still ask what their home is worth.
- Buyers currently have more to choose from.
- Home ownership is so important, right? Where are you gonna live now? Everyone needs a home!!
Please watch My video at https://youtu.be/F8LyK0o5f2Q for all the charts and explanations.
Listen to Governor Doug Ducey speech on his latest update, he’s been doing such a good job with not much death and infection in our state, click here.
Important President Trump plan to reopen the Country recorded April 16th, click here. Along with the opening of America again, here.
Opening up America: The plan, click here.
- Border control strict still.
- State by state decisions, Gov Doug Ducey should be having a press conference in the coming weeks.
- Preparing states and hospitals for safety to workers and proper protective gear
- Gyms etc can open with 6 feet distancing along with other shops etc.
- 3 Phases depending on what area you live.
Some quick facts/links on how to keep up to date with the Coronavirus spread.
- Click here daily for Arizona Department of health Covid
- Keep track of the virus at worldometer.com here.
- Governor Doug Ducey Full April 14th Corona Virus Update. Click here.
- Governor Ducey’s News broadcast April 15th, 2020 interview on where AZ is at. Click here
- Opening up America video, click here.
Links on what you can do right now if the you’ve been affected financially!
- Apply for the Rental eviction prevention Assistance program, here.
- $1200 stimulus checks, should be coming soon
- Call your bank / lender and get your mortgage deferred.
- Here is how to protect yourself and others from Covid-19, click here.
- Small business cares act, click here. For small business relief application including the $10,000
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Federal COVID-19 economic relief resources for U.S. airbnb hosts.
- Unemployment insurance benefits.
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Save Our Home AZ – Foreclosure Assistance if you’re having trouble with your mortgage payments.
Call me for a one on one if you’re thinking of selling or buying your home!
Jay Bru
480-466-4917
jay@jaybrugroup.com
“Only when the tide goes out do you discover tho’s been swimming naked”
Warren Buffett
A good example of that are Offerpad, zillow, Opendoor, and Redfin whom are pausing transactions and sales 25% down In March with most properties in the $200-300k which is good news for buyers in this price range.
