The pandemic has touched all industries. There is definitely a slight simmer in our market but the homebuyers in our market today are very serious buyers and homes are still moving. The market is still strong and prices have remained the same. The Tucson market, new pending sales are at about 85% the rate post COVID-19 as they were pre COVID-19. That’s still quite a bit of activity.
Interest Rates ?
Interest rates are low, for example, Andrea Johnson from Long Mortgage stated: “For rate and term only, I’m quoting 3.25% or 3.125% for .25% points for the 30 year and 2.875% for the 15 year, with no points.” Rates vary day-by-day and throughout the day so check with your lender to see where they are at.
What About Appraisals ?
I spoke with a long-time Tucson appraiser and he let me know there have been no changes in appraising properties due to the pandemic and does not expect any changes unless this pandemic goes on for months to come.
What About Sales ?
Sales will pick up when the economy reopens as many potential homebuyers and sellers indicate they’re still in the market or will be in a couple of months,” says NAR Chief Economist Lawrence Yun. “Home prices remain stable as deals continue to happen with the growing use of new technology tools. Remarkably, 10 percent of REALTORS® report the same level or even more business activity now than before the economic lockdown.”
Online activity has skyrocketed and as soon as the economy reopens, I expect a robust housing market. There have been lots of online inquiries on homes and folks saving properties to watch online. Technology has helped with this pandemic such as virtual open houses, FaceBook Live tours, FaceTime with clients to show homes, and being able to use e-Sign for contract paperwork.
Elliott D Pollack and Company stated today: “At the state level, it appears that Governor Ducey will allow the state to start the reopening process sooner rather than later. Given the virus numbers in the state, that makes sense. He also appears to be trying to make people feel safe, getting input from the private sector and properly setting expectations. It seems to be well thought out.
The guts of the federal government plan to reopen the economy calls for a phased reopening state by state or even county by county at the pleasure of each Governor. It will be based on up-to-date data, the ability to mitigate the risk of a resurgence and protecting the vulnerable. The number of daily new cases and deaths from the virus have flattened out. The health system has not been overwhelmed. But, should the number of cases accelerate after reopening, it’s back to shelter in place.”
Blessings for you and family. Stay safe and healthy.