Market Watch While Staying HOME During COVID-19

Staying Home. For many of us, it has a different meaning than it did in the past. Never before have we, as a nation, been asked to stay home in the way that we are staying home right now.

With uncertainty in the local, state, national and world economies, many people are breaking out their crystal balls to tell us exactly where the real estate market is heading. For some, it is total doom and gloom. For others, it is a buying opportunity frenzy. For many of us, it is an opportunity to look at our own personal situation and try to make the best decision we can.

I am under the opinion that real estate is very local. From states to cities to neighborhoods, markets can be vastly different.

In Arizona, our market was very strong prior to the last few weeks when our entire world began to change due to COVID 19. While some people have been forced to the sidelines, there are people who are still very much interested in buying or selling. In fact, our MLS system shows us that we had more than 5200 homes go under contract since the Friday before last. (March 27th, 2020)

This photo below shows the number of homes that have gone under contract in the town of Gilbert in that same time frame.  (11 days) 317 homes, an average of just 34 days on the market with an average list price of $414,782.

stay home market update

This past Sunday, Catherine Reagor wrote an interesting article about our current real estate market. <– That’s a link to the article published on April 5th, but you might need to pay to read it.

While I don’t always agree with everything Catherine says, I did find some of the quotes from her article to be very interesting. I’m also a fan of some of the people who produced the data she included in her article.

Quoted in the article were:

Local Arizona economist Elliott Pollack
Arizona Housing expert Tina Tamboer of the Cromford Report
Real Estate consultant Jim Belfiore

While people are still moving to Arizona, the numbers have certainly slowed because of national and world events. In our personal business, we have RECENTLY helped an incoming health care professional, a corporate relocation client, parents of a college student, a relocating military employee and others who have had needs to move during these less than ordinary times.

“People aren’t moving now and that means they aren’t buying homes,” Pollack said. “’Phoenix’s strong population growth was driving the housing market. That’s over until this crisis is over.”
According to Reagor’s article, “Tamboer, Pollack and Belfiore think metro Phoenix’s housing market will take off fueled by pent up demand as soon as the fourth quarter if the coronavirus pandemic eases.”

“It will be like a hose with a kink that is suddenly fixed,” Tamboer said. “Home buyers will pour out. Buyers looking for prices to plummet will be disappointed.”

Of course, I am also seeing articles that tell us the market is about to tank, like it did after the last “crash” that we went through. There’s concern with some mortgages. There is concern about the overall economic recovery that could be a challenge for far too many Americans. Personally, I feel like our market here in the Phoenix Metro area will be just fine. BUT  some areas are already  having fewer showings, longer days on the market, etc.
Never before have I felt more like a counselor to people. My job is to help people make sound decisions when buying or selling a home. If it makes sense for them, we try to help them. If we think it does not make sense for them to make a move, we let them know that, too.
For several months, I have been watching a few zip codes in areas close to where we live. The super low number of homes for sale have had me watching for signs of market changes. It is so interesting to listen to the media, talk to other industry professionals, listen to our clients and watch the MLS numbers to see how all of this info comes together.

Staying Home – Watching Closely

Yes, I am staying home and staying safe as much as possible. But, I love the fact that I can be in constant contact with our brokerage and our local, state and national associations to keep up with current changes in the industry. Many current and past clients have also been very helpful to talk with during these changing times.
Here are some interesting stats for our current housing inventory levels.

Currently for sale: Single family homes

As of May 19th, 2020

10,325 Single family homes for sale

Tempe 85284 zip code – 33 homes for sale – Average list price $687,676
Average of 64 days on the market

Mesa 85202 zip code –  11 homes for sale – Average list price $363,336
Average of 47 days on the market

Gilbert 85295 zip code –  78 homes for sale – Average list price $480,022
Average of 49 days on the market

Tempe 85281 zip code –  40 homes for sale – Average list price $412,092
Average of 111 days on market

 

As of May 5th, 2020

11,026 Single family homes for sale

Tempe 85284 zip code – 39 homes for sale – Average list price $703,157
Average of 67 days on the market

Mesa 85202 zip code – 15 homes for sale – Average list price $377,433
Average of 31 days on the market

Gilbert 85295 zip code – 78 homes for sale – Average list price $478,854
Average of 49 days on the market

Tempe 85281 zip code – 45 homes for sale – Average list price $400,300
Average of 97 days on market

 

As of April 21st, 2020

11,360 Single family homes for sale

Tempe 85284 zip code – 37 homes for sale – Average list price $730,605
Average of 70 days on the market

Mesa 85202 zip code – 21 homes for sale – Average list price $387,005
Average of 29 days on the market

Gilbert 85295 zip code – 87 homes for sale – Average list price $456,738
Average of 44 days on the market

Tempe 85281 zip code – 48 homes for sale – Average list price $408,121
Average of 101 days on market

 

As of April 7th, 2020.

11,153 Single family homes for sale

Tempe 85284 zip code – 30 homes for sale – Average list price $722,147
Average of 71 days on the market

Mesa 85202 zip code – 19 homes for sale – Average list price $402,726
Average of 23 days on the market

Gilbert 85295 zip code – 72 homes for sale – Average list price $445,458
Average of 43 days on the market

Tempe 85281 zip code – 39 homes for sale – Average list price of $404,179
Average of 109 days on the market

 

As of March 27th:

10,324 Single family homes for sale

85284 zip code – 29 homes for sale – Average list price $738,000
Average of 60 days on the market

85202 zip code – 13 homes for sale – Average list price $407,962
Average of 25 days on the market

85295 zip code – 73 homes for sale – Average list price $445,849 

Average of 36 days on market

85281 zip code – 39 homes for sale – Average list price $402,248
Average of 99 days on the market

8,569 single family homes for sale in our MLS as of 3/12/20
9,332 single family homes for sale in our MLS as of 2/13/20

Since I live in the 85284 zip code, I thought I’d add this chart showing average list price in the area. To me, it’s just interesting to watch. Please feel free to reach out to us if you have any questions about market conditions in your neighborhood.

Average List Price - 85284

  • 701596.67,680056.84,691921.72,695256.02,690724.16,693169.93,667634.48,724793.88,739742.33,689390.82,705414.20,692865.71

Information is deemed to be reliable, but is not guaranteed. © 2020

NIck Bastian Realty Executives
Nick Bastian
Nick Bastian
Nick Bastian is a 28 year veteran of the real estate industry and enjoys his career very much. Nick is always available to "talk shop" with anyone that may have real estate related questions. "Just Call Nick" at 602-803-NICK (6425) - he's glad to help. Nick can also be found over on Instagram and Twitter ( @NickbastianAZ ) or out and about in the community making friends and having some fun.

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