Navigating the economy & housing market through COVID-19
- Pivot along a long economic and market trends
- Retail sales down. Home improvement spending up (are sellers ready to list)
- Mid & lower priced properties are in high demand
- REALTORs could expect multiple bids in certain price points
- Strategic time to list
- Buyers should lock in mortgage rates to avoid inflation
- Guide buyers and sellers with current data
- Sales will rise as lockdown is lifted
- Remain optimistic
- Rise in savings may increase spending
- Economic predictions: Low mortgage rates. Rising home sales 10-15%. Home prices growing 3-5%.
- Improvement is on the way
On June 25, 2020 @ 1:00 pm – 2:30 pm NAR Chief Economist, Lawrence Yun held a town hall for SAAR Realtors.
Here is his power point and my bold point personal notes …PowerPoint – Lawren Yun Slides – Market Outlook – Phoenix az
NAR 2020 President – Vince Malta
- No Realtor Playbook for Pandemic. We are writing it as we go.
- Below 40% home ownership during the crash.
- Video to watch – https://www.nar.realtor/videos/bias-override-overcoming-barriers-to-fair-housing
Nar Chief Economist & Senior Vice President of Research – Lawrence Yun
- Many jobs temporarily furlough.
- March 15 – June 6 = 45 million lost jobs – 21 million receiving unemployment. Miss leading.
- Worst case job loss over in the State of Arizona. For Realtors it is a disruption in business.
- Possibility mortgage rates might go lower.
- Low inventory, no subprime lending.
- Mortgage applications up 20% since June last year.
- 1 mortgage application. 2 pending. 3 closings. We are out 2-3 months.
- Bad news – federal budget deficit. Who is buying this dept? $4 trillion in 2020
- Keep printing money and it will affect us 5-7 years down the road as in a weak dollar.
- Lock in a low rate mortgage it will not increase.
- It should take off early 2021. + numbers throughout.
- The worst Is over.
- International buyer/seller will be tough because of travel and huge number increase.
- College towns could take a hit because many foreign students.
- Top 5% (Luxury) market might need a price reduction.
- Mid-Market prices are rising, multiple offers, etc.
- Builders not coming back to the market. Permits are expensive. Lack of construction workers.
- Jumbo loans – not really loosen up.
- Short term rental – is a local issue not national.
Tell us your thoughts by commenting below… If you are looking to buy or sell in Phoenix, Scottsdale, Tempe, or throughout Maricopa & Pinal County lets partner up and find you your forever home or investment. If your selling let’s talk!