Here’s what the experts are saying about current real estate conditions. Subject to change if we don’t get Arizona back to work soon.
There is growing evidence that Arizona home buyer demand is beginning to bounce back in some areas of Phoenix and Surprise. After plunging in March, as coronavirus-related stay-at-home orders were put in place, buyers are coming back to the market and expressing interest in available homes for sale.
But home buyers may have some surprises in store. That's because, while the coronavirus has shocked the economy and disrupted the beginning of the spring sales season, it hasn't led to a big decline in home prices yet.
In fact, it's caused the already low Arizona combined new and resale inventory of homes for sale to fall further, which means there's a chance active buyers could find themselves in competition for the homes that are available.
Since competition drives prices higher, as qualified buyers compete to outbid each other, there's no expectation that prices will fall significantly any time soon.
Check out the chart above that is helping the demand:
In other words, while housing market activity has slowed, the downturn has only amplified the market's existing challenges. That means, there are still more prospective buyers than available homes for sale, which may result in competition for good homes.