Well, we’re one month in to our Arizona shelter-in-place order. Let’s dive in to our Phoenix market update for April 2020 and see what’s happening in the real estate world.
First, the good news.
The real estate market has not collapsed. What we’re seeing is sellers who are pricing their homes at market, but being a bit more willing to lower the price during negotiations (not at all price points). Sellers also seem more willing to either complete repairs or provide healthy credits for repairs.
As of April 28, 2020, there are 14,029 active listings across the Phoenix metro area–this is up from 13,200 one month ago. There are 10,176 pending sales–this number is down about 800 from one month ago and the average days on market for recently sold homes was 51 days–down five days from last month. Active listings have been on market an average of 90 days.
Here is a chart showing the Supply v Demand last month as compared to one year ago. As expected, the price point with the most inventory is $300K to $500k.
The Rental Market
We’ve not talked much about the rental market, but having received no less than three calls in the past week about it, we thought it would be good to discuss a few numbers. As a general comment, the rental market is very strong.
There are just under 4800 actively listed rentals across the county and another 700 or so under contract. Over the past month, there have been 1800 closed rental transactions and the average days on market was just 26.
Home Financing
While jumbo loans are harder to get right now, conventional 30 year home loan rates have notched back down a bit. According to Bankrate.com, there are a few lenders offering rates with no points at 3.375 (rates vary by borrower FICO, assets, income, etc).
Given that many folks are out of work, a few clients have called and asked about mortgage forbearance. One of our preferred lenders made a nice video about it that you can watch here:
https://www.loom.com/share/8256882181314bd28bd8b30825194047
Final Thoughts
We’re still seeing real estate activity though this past month was not as strong as last year. Only time will tell if our recovery is v-shaped (best case scenario) or if we end up in a protracted recession. We’re optimists and are hoping that once restrictions ease around our state, and the rest of the country, that there will be pent up demand and a strong desire to get the economy on a good track.
Thanks for checking out our Phoenix market update for April 2020. Please reach out anytime if you have a real estate question or need.
