On March 31, 2020, Governor Ducey issued a stay-at-home order to help prevent the spread of the coronavirus. In response, life came to a standstill throughout Arizona as some employees transitioned to work-at-home, and many businesses closed their doors. Although the state has slowed down, its real estate market has remained active. Here is more on how Arizona property prices continue to rise during the pandemic:
Supply and Demand
Supply and demand are always of critical importance when it comes to the housing market. As COVID-19 has spread throughout Arizona and the country, many employees and business owners have experienced significant economic changes. The impact has led to shifts in Arizona’s housing market conditions. Before the outbreak, in some Arizona communities, sellers were actively listing properties every day. Now, homeowners who may have planned to put their properties up for sale may be choosing to wait until conditions improve. With reduced supply, buyers who are still looking in these markets have fewer options. For instance, in March, Flagstaff, Arizona, reportedly saw its already low inventory of homes for sale decline. At the same time, the median home price rose by six percent.
Changes to the Housing Inventory in Metro Phoenix
According to one report, in February 2020, the Phoenix area saw a 42.2% decline in housing inventory–The largest in the country. However, since March, several of the Valley’s 17 cities have seen a noticeable increase in stock. Overall, there was a 27 % increase in available properties in March over this same time last year. Mesa’s home supply went up a remarkable 19% that month.
An increase was needed in this market as demand had been at an all-time high for Maricopa County. It continues to be a seller’s market in the Phoenix area, but the increase in supply has helped buyers. For those buyers who had been trying to get into the Phoenix area, this shift may provide options and opportunities that would not have otherwise been available. Further, a buyer or investor may want to take advantage of the current lower interest rates and the rare increase in the area’s inventory.
When buying or selling real estate, it’s crucial that you have an experienced real estate attorney to protect your interests. Laura B. Bramnick is an experienced Arizona real estate attorney who can help you manage all aspects of your Arizona real estate matter. If you are seeking an exceptional, client-driven real estate lawyer in Scottsdale, Phoenix, Sedona, and throughout the State of Arizona, contact Laura B. Bramnick to schedule your consultation.