Today, I will take you with me to examine the activity of the Tucson real estate market as we begin facing Coronavirus (Covid19) as a community. I will share with you an in-depth look at the Tucson real estate market from the Tucson Multiple Listing Service along with updated information from the Arizona Department of Heath as well as the CDC.
Deals Fall Through.. Agents Struggling
I don’t like being a “Doomsday Predictor”.
However, you would be shocked at the amount of hate mail, complaints to the Real Estate Board, and comments made on social media when I gave this interview to KOLD 13 back in February 28th, 2020 when I said that “people are hesitant to buy during uncertain times.” How little did I know that even 30 days later… the entire United States would be practically on lockdown?!?
Nobody is laughing, or complaining about my predictions now however.
In fact, this article by the online blog “The Real Deal” oulines the very real problem that real estate agents and their clients are having in a “Coronavirus” world. Homeowners are reluctant to have complete strangers through the home… Homebuyers are reluctant to go to strange homes, or homes that are in need of work.. Even some real estate agents are unwilling to show properties without some “social distancing” at hand!
As City, and County workers continue to work and provide services to the community (such as recordation services at the Pima County Recorder) then life, as we know it for real estate can continue somewhat. Escrow companies will modify their closing appointments, or remote closings, or even closings by mail can occur. Escrow companies can mail the documents to you for your signature in front of a notary.
Selling Homes In an Age Of Coronavirus
It is undoubtable that this will be with us for some time to come. This will also affect how we sell homes in the age of Coronavirus, as well as other virus’s to come. Things that we used to take for granted now seem incredibly important. Cleanliness. certainly is next to Godliness.
Cleanliness.. is next to Godliness…Your Mom
In a recent article by the Wall Street Journal.. it was noted that even the very ways we are selling homes during this present Coronavirus age is changing the way we do business. For many people who are looking to sell their homes, pricing becomes even more important. (Be sure to watch the YouTube video for a detailed price discussion!)
🔉🔊 Listen To Related KarlBuysHouses Podcast “Should You Sell Your House During A Recession?”
Not only is pricing your property to sell more important than ever, it is critical to look very hard at the first serious offer that comes in. A solid piece of advice that I always gave my clients was this.. “The first offer you get, is usually the best.”
Understand, there is an increasing amount of homes coming on the Tucson MLS, and if you are trying to sell your home in the least amount of time, with the least amount of hassle… then you will want to work with every serious buyer that comes through the door!
NAR Study Shows Coronavirus Impact on Real Estate
The National Association of Realtors recently did two studies to determine the effects of the Coronavirus on both homebuyer, as well as homeseller sentiments. These two studies were performed on March 9th, and then again on March 19th, 2020. The differences between these two studies were dramatic.
These studies showed that in the intervenening 10 days between the 9th and the 19th, nearly 48% of all agents had noticed a sharp decline in buyer interest (up from 16% of the agents who felt that way on the 9th) . Not only were the residential real estate agents seeing this decline of interest, but commercial agents were too. This is a very disturbing sign. As there is a decline in commercial tenancy, or sales. businesses suffer. As businessess suffer… so do their workers. It is a vicious circle.
Very low interest rates have done little to counter the fears that potential home buyers have. Many home buyers are uncertain as to how much they really want to commit to a 30 year loan at this time… especially with prices still being very high and not reflecting the decreased demand.
🔉🔊 Listen To KarlBuysHouses Podcast: “How To Price Your Home To Attact The Highest Offers During A Pandemic!”
What To Expect In The Coming Days
While I don’t have a “crystal ball” and I can’t predict the future… I think it is fair to say that the real estate market has significantly changed. Even though Tucson (at the time of this writing) has only had two deaths. I do fear that that number will dramatically rise.
As that number rises, this will increase the tension, and fear that American are already facing. Homeowners who do not need to sell their homes will take their homes off the market as they see fewer and fewer showings with less serious offers.
The homes that are in the best condition, with the best price, will sell very quickly. A home that has a long “days on market” on the Tucson MLS will be even more stigmatized than before resulting in a less profitable sale.
It is hard to say with any certainty that the Tucson real estate market will return to what it was in January 2020… however. it is becoming increasingly unlikely as the seriousness of this biological event unfolds.
Contact me today at (520) 403-6227 for more information or click here to Get a Cash Offer Today!
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