Fewer sellers and even fewer buyers have meant that monthly home sales figures in and around Phoenix have dropped by a whopping 26.9% if not more. The full month of stay-at-home orders in April caused an average 20.2% drop as compared to the same time last year.
Phoenix, AZ -- (ReleaseWire) -- 06/16/2020 --Home sales across Phoenix, and other cities in Arizona continue to plummet. Inventory across 53 markets tumbled by 20.5%, with the median sale price going up by 9.3% to $276,000. Phoenix saw the sharpest drop in sales to 26.9% compared to the same time last year. However, the median sales price rose the highest in Phoenix by 11.1% to an average of $300,000.
Many experts believe that the results in April 2020, i.e. the first month during which a complete lockdown was imposed was better than expected. Consumers were continuing to buy and sell various types of real estate, which, despite its challenges, wasn't maybe as bad. If anything it speaks to the resiliency of ownership. However, during what is otherwise the fifth busiest month of the year in terms of home sales on the back of a slumbering winter sales, had many markets like New York, San Francisco, Miami and Detroit posting declines of sales of over 40%, so Phoenix did comparatively better. Only two markets, Billings, MT and Minneapolis, MN, posted a slight increase in sales.
The question many people are asking themselves is will real estate prices across Phoenix decline as we get into the advanced stages of the lockdown? It's hard to say, except for stating the facts. One fact is that there are almost no buyers, and few sellers too. Those who are selling are doing so for an instant injection of cash, but if they can't get what they think their home or office is worth, which is why they are choosing to hold on to it. If you would like a cash offer Visit AZ Home Offer.
Around 600,000 Arizonans having applied for unemployment since early April, the governor has had to place a moratorium of evictions through to July. However, rent is due, and UMOM is now seeing a rise in demand which shows that people don't have the money to buy property. If anything, they are looking for cheaper alternatives. That means if the situation goes on for any longer, we could see prices slide as sellers become more desperate.
"In our experience with the housing market during the pandemic is that there are next to no buyers. There has been low supply, and even lower demand affects prices directly as time moves on. We expect that prices could remain high, but with more people looking for cheaper places to rent and buy means that demand for affordable housing is rising. As far as long-term impact goes, it's too early to predict at the moment." Said Israel Ramirez of AZ Home Offer.
AZ Home Offer is based in Phoenix, AZ and offers cash buyouts for people selling their homes. The company continues to buy homes despite the pandemic.
Name: Israel Ramirez
Company: AZ Home Offer
Address: 20050 N Cave Creek Rd #117, Phoenix, AZ 85027
Phone: (602) 900-9327