May 2020

"Although the world is full of suffering, it is also full of the overcoming of it."

        - Helen Keller


Forecast: 10 'Strongest' Housing Markets Through Coronavirus and Into 2021
HBI
By Brandon Cornett | April 23, 2020

Key highlights from this report:
  • A recent forecast singled out the 10 strongest housing markets in the U.S.
  • These real estate markets could survive the coronavirus crisis better than most.
  • Home prices could actually continue rising through the pandemic, in these metros.
  • Arizona, Idaho and Washington made a strong showing in this particular forecast.

The 10 Strongest Housing Markets Into Spring 2021


Earlier this month, the property valuation company Veros Real Estate Solutions published a housing market forecast that ranked the ten strongest housing markets in the U.S.

Specifically, these are metropolitan-area real estate markets that have the best potential for home-price appreciation over the next year.

While home prices in some U.S. cities could drop over the coming months, the research team at Veros believes those declining markets will be the minority. "For the next 12 months, we expect 10% of all markets to depreciate," the report stated.

Conversely, that means the company expects home values to either hold steady or continue rising throughout the public health crisis. Or at least through the first quarter of 2021.

Some housing markets could experience steady but slower home-price growth over the next year, despite our current economic woes. According to the Veros real estate market forecast, metro areas in Idaho, Washington and Arizona are expected to show strength over the coming months.

 

Metro Phoenix Home Prices Hit Record In March But Sales Slowing
StreetScout
By Catherine Reagor| April 26th, 2020

Metro Phoenix median home price hit a record in March, but most of the sales that drove the price up to $302,500 were negotiated before COVID-19 hit. The forecast for April is a slight dip in home prices to a median of about $300,000, according to pending sales tracked by the Arizona Regional Multiple Listing Service.

Part of the projected slip in the area's median home price this month will be due to more lower-priced homes listed for sale after the coronavirus started shaking the economy in mid-March. Housing expert Tom Ruff of ARMLS's Information Market group said many of those listings are likely highly leveraged short-term rentals that owners need to sell quickly.

Those listings might give first-time buyers who have been outbid by investors a break, which would lead to more sales. But that trend hasn't shown up in the weekly indicators yet.

TRACKING MARKET BY THE WEEK INSTEAD OF MONTH

Housing analysts in the novel coronavirus pandemic are comparing home sales and prices by the week instead of by the month. Ruff said the number of homes for sale climbed during the last week of March, likely due to some panicked sellers.


Coronavirus Pandemic: Slowdown Coming For Homebuilding In Metro Phoenix
Street Scout
By Catherine Reagor| April 19th, 2020

Last month was the best March for new home sales in the Phoenix area since the boom of 2005, so it will take a while for that momentum to cool.  But homebuilding in metro Phoenix is bound to slow along with the rest of the economy due to the COVID-19 pandemic.

Fewer potential buyers are venturing out to check out new communities, even though some homebuilders still have sales offices open with hand sanitizer by the front door.
And workers still are building homes in many Valley subdivisions. Construction is one of the essential businesses named by Gov. Doug Ducey to remain open during this crisis.

Jim Belfiore, a homebuilding expert, is forecasting that this year's biggest drop in new home sales will come during the second quarter. But don't expect a repeat of the housing crash of 2008-12 when tens of thousands of new metro Phoenix homes sat empty as buyers walked away. Those neighborhoods became ghost towns for a few years until prices fell and enticed bargain buyers.

Back then, the housing market led the economy into a recession. That's not the case this time. "Conditions are rapidly changing in the housing market, going from a huge wave of demand to very little..." Belfiore said. "But it should be a temporary disruption." He held a video forecast last week to help builders and homebuyers with the latest data and tips during these tough uncertain times.

HOMEBUILDING WATCH

Belfiore expects fewer new homes to go up in the Valley than in recent years, which was a downward shift from earlier projections.







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 1. Visit Museums
Google Arts and Culture partnered with over 2,500 museums and galleries around the world to offer virtual tours of their spaces. Some of the options include New York's Museum of Modern Art and Amsterdam's Van Gogh Museum. The Louvre, based in Paris, is also offering its own virtual tour online for free.

2. Explore National Parks
For those who want to surround themselves with nature without the traveling and going-outside aspect of it all, national parks are also providing virtual tours of America's most popular parks. Virtual visitors can travel through the trails of Yellowstone National Park, as well as the Yosemite National Park.

3. Visit The Zoo
Some people count on the company of a furry friend at home, but others rely on spaces on the outside world to view them. Thankfully, spaces like the San Diego Zoo, the Georgia Aquarium and the Monterey Bay Aquarium are offering live webcam viewings of pandas, penguins and beluga whales.

4. Tour the Great Wall of China
Trips all around the world were undoubtedly canceled amid the COVID-19 outbreak, but a tour of the Great Wall of China is available for anyone who's ever wanted to visit this wonder of the world.

5. Get Yourself to Mars
International trips are one thing, but, if you're feeling a bit more adventurous, you can take a virtual trip to Mars. NASA partnered with Google to offer a tour of a 3D replica of the Martian surface recorded by the Curiosity rover.

6. Take a Trip to Hawaii
As we go through high-tensioned times, keeping yourself relaxed is as important as keeping yourself clean. With the help of Google Earth, users can take a tour of some of Hawaii's beautiful landmarks, such as Hawaiʻi Volcanoes National Park and Waikiki Beach.
See Links Below for Information on Covid 19


Danny Corona
REALTOR®

602.373.5657 |  danny.corona@bhhsaz.com  |  thecoronateam.bhhsaz.com