Our communities, city, state and country are experiencing an unprecedented challenge at nearly every level and every industry.   Naturally, many are concerned about home prices.   While we have seen a slight reduction in supply (active listings) and a reduction demand ( showing activity is noticeably down, but offers are still being made, and purchase contracts are still being executed) in the metro area, we do not believe this will affect home values in the near term. Of course, if the state goes into lock-down or even strict continued social distancing for many weeks, the impact could be greater.

But because Phoenix Metro is a major immigration destination, a slight to moderate slow down in market activity will not change the shortage of housing supply.   So, while things are stress inducing, please do not panic about your home’s value.  And, Micheal Orr of The Cromford Report warns that waiting for huge price reductions before making an offer will most likely lead to disappointment.

Further,  Michael Orr, The Cromford Report, 3/18/2020  goes on to say “a number of people seem to assume that we are heading for a recession and that home prices will fall. The first assumption is quite reasonable. The second assumption is based on fear and has little analytical data to back it up. Obviously anything can happen in a uncertain and disrupted world, but a fall in home prices is still looking very unlikely from today’s numbers.”

If you would like to get the  full commentary from March 18 Cromford Report or discuss your home or real estate concerns, please call or email, I’d love to hear from you.   Let’s get through this thing.  As the old saying goes: “this too shall pass.”