Phoenix Real Estate Market 2020

When You think of Phoenix, You think of a beautiful city in the middle of a magnificent landscape. Many people also think of the Phoenix real estate market as a fantastic investment opportunity.

For many years it has been true, but today’s situation is a bit different.

Phoenix real estate market has been rock solid for many years, and it has been one of the hottest housing markets in the country, but now there’s much uncertainty due to the COVID-19 situation.

 What are the actual problems that people seem to be concerned about?

The impact of COVID-19

You don’t have to be an economist to understand that the COVID-19 pandemic isn’t great for the economy.

The effects of the pandemic are felt around the world in almost every industry, and the real estate industry is no different.

Tenants are being squeezed since they feel a lack of liquidity, which results in delaying or stopping contractual lease payments. 

Meanwhile, owners are concerned with both liquidity and preserving value.

We have noticed that one of the most impacted are high-end luxury market buyers. The weekly contract activity over $500,000 has recently slowed down by 65%. All sellers are now beginning to realize that it’s going to take a longer amount of time to sell their homes.

When you hear information like this, you could start to worry, but don’t worry because the situation isn’t as fatal as it looks like at first glance.

Phoenix Real Estate Market Predictions for 2020

It’s evident that the current situation is difficult, but the good news is that every difficult situation has an ending, and this one is no different.

The main question when people make real estate market predictions for 2020 in Phoenix is whether the real estate market of Phoenix is going to crash during this pandemic in 2020.

And while it still is a prediction and nobody can say any statement with 100% certainty, we believe that the answer is plain and simple- No.

The COVID-19 pandemic has slowed down the worldwide economy, but that doesn’t mean that it slowed it down forever.  

Even though there are overall fewer buyers and sellers right now, it doesn’t mean that the market is on a massive downtrend.

Conclusion

The most important thing to do in this situation is to remain calm and wait for how it will all end. After all, stressing over it doesn’t help much.

It’s visible that the primary driver of people’s decisions right now is to stay healthy, safe, and financially secure.

 When it comes to the Phoenix real estate market in 2020, we have seen a noticeable downtrend in the past few months, but it’s not as massive as many people thought it would be.

 Nobody knows how the situation is going to evolve, and therefore it’s hard to make a conclusion.

If the COVID-19 pandemic ends by September 2020, we may see a global real estate market on an uptrend in Q4, but again, it’s a big statement.