Just 5 days ago the Covid effect on the Phoenix Metro area seemed to be slight.  Our extreme imbalance of supply to meet incredible demand was virtually unchanged.   But as of today, perhaps because of extreme social distancing, showings and properties going under contract are measurably lower.   While some sellers are removing their listings from the active market to avoid visitors, a greater number of owners are putting properties on the market.  So, demand is reducing and supply is growing.   How this metric will develop is unknown as this pandemic is a completely unprecedented phenomenon and I believe much depends on the ultimate success and timeline of  our over-all response and defeat of the pandemic, as well as the effect on the economy and jobs picture.   Look here for updates as I will be reporting on it frequently.

From The Cromford Report 3/23/2020:

“More Supply

Active listings without a contract across all areas & types stood at 12,086 on Saturday – up 9% from a week earlier. This is a sudden change from the previous week when counts were close to flat week on week. This is due to a couple of large effects and one small one:

• a significant increase in new listings arriving
• a significant decrease in buyer activity, so listings are not going under contract as quickly
• a few more listings have been taken temporarily off market, but this is a minor effect compared with the 2 above”

The report goes on to state:

“During the outbreak, there is little reason to suppose that house values will be significantly affected, up or down. However sales volumes will inevitably collapse for a while until the outbreak dies down…

“Once the pandemic recedes, the market will come back and pricing will once again be determined by the balance between supply and demand.”

For the full report or a more up to date one, please call or email.