A Recession Does NOT Equal a Bad Housing Market

Dated: April 10 2020

Views: 85

Some Highlights

  • The COVID-19 pandemic is causing an economic slowdown.
  • The good news is, home values actually increased in 3 of the last 5 U.S. recessions and decreased by less than 2% in the 4th.
  • All things considered, an economic slowdown does not equal a housing crisis, and this will not be a repeat of 2008 because the same factors do not exist this time.
  • We are so low on inventory right now, we've been begging for something to happen.
  • Even though this is the normal time we get some more 'spring-time' listings, more investor-owned rentals coming to the market could be a great thing for all the buyers that want to buy.
  • Homes (locally) have all been going under contract this past week, almost as soon as they go on, with multiple offers.
  • For those that are currently under contract, lenders are simply holding their loan file with the full understanding they're going back to work as soon as this is all over; no change.
  • Real Estate was declared by Governor Ducey as an essential service and told to carry on. I've had an increase of appointments and STILL harsh competition with every offer.
  • Think about this: If we slowed to half the speed that our market absorption rate is currently at ... we'd still be less than 2 months to sell a home; unreal.

Recession does not equal a bad housing market in AZ

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Brandon Switzer

I am a full-time professional marketing homes & making dreams come true for new home buyers. I work, live, and play in the Phoenix Valley and specialize in selling in the boundaries and outskirts of t....

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