By Mike Bodeen · 20 April 2020
It’s a question that’s being asked more regularly in real estate circles since the pandemic began. And I can save you some time right now, that if you’re looking for a quick definitive answer, you won’t find it in today’s snapshot. The only good answer is that it depends on the individual’s circumstances and comfort level. I’ll give you our best advice to consider.
First, on the buy side:
Three weeks ago, two of our buyers that we had been relentlessly showing many homes to in our deathly low inventory market, (both in the $200,000 price range) pulled the plug and stopped looking. One buyer was under contract in escrow. He was self-employed in Seattle and had 4-5 painting jobs lined up, then they all fell through. He immediately cancelled his transaction, discerning that for him, this would not be the best time to move forward.
Due to Covid-19, the other buyer also pulled back. We had been looking for months for homes in the West Valley, and he made offers on three homes, each time getting beat out by other buyers willing to pay way above value (in my opinion). So he chilled for about 2-3 weeks. But last Friday, a nice town-home in a great gated Surprise community came on the market, so I contacted him that maybe he should look at this one. He did. He bought. No other buyers were competing. Bought it under asking price.
Both buyers paused in their house hunting. I think both made the right decision. For the first buyer, he had a legitimate concern about what the present crisis held for his livelihood. He will come back into the market when he can. The second buyer, however, got on board when the right home became available. He will benefit by all-time historically low interest rates, and he got a fair value on the home he’s now buying.
Each buyer is unique. Some buyers can prosper in these times. I think the most important factor a buyer should ask, is, “Does the home I’m buying or want to buy check all the boxes for me? Does it accomplish our goals? Will we enjoy it when this temporary crisis subsides? Remember, though value is important, it’s a home! A refuge.
I’m of the strong opinion that Arizona, Phoenix Metro, will not only come back, but will even be stronger than before. Migration to our open land will increase further, and not just from neighboring California, but from other dense cold climate states as well. Our state’s emphasis on health care will become even more appealing.
So Arizona buyers, if you find the home you want, and it checks most all your boxes, then this may actually be the best time to buy.