Coronavirus & the Housing Market!

First off, we are terribly sorry for anyone directly or indirectly effected by the spread of this virus. It’s a fine line for us to say “don’t panic, it’ll be OK” and sounding insensitive. James and I just returned from our Berkshire Hathaway convention in Nashville and while we bumped elbows versus shaking hands with people we met, it seemed everyone there was in high spirits. So many of us are having a hard time not getting swept up in the media this past week because some headlines are just scary, but please don’t feed into it but instead watch my interview I just did today regarding our market and the Coronavirus…
Below are some great articles to help you sleep tonight too!!! This one especially, think about it- if you’ve been hearing how hard it’s been to buy a home lately because we don’t have any- Carpe Diem! Valley sees largest drop in Housing Inventory. Feb of this year we are down by 42.7% from that of last Feb While others are hoarding toilet paper and sitting on the fence watching what’s going to happen next, there will be some people taking advantage of opportunities during this current chaos we find ourselves in…

Phoenix Housing Prices see largest Gain in US – 
Rents in Arizona see the highest increase; People who are renting should consider purchasing 
Arizona leads Nation in wage and employment growth
Phoenix still #1 Migration spot throughout the country 🙂   
***One Million more People by 2030.  ‘Builders can’t build fast enough to meet the demand’ –
***BOOM 🙂  Phoenix named #1 Housing Market of 2019 – 
***Arizona is the #2 Relocation Destination for Californians moving – 
***What the housing market means for the economy  – 
***Hottest Housing Markets for East Valley – 
***How Strong is the Phoenix Housing Market?  
***Fannie Mae Raises US Housing Market Forecast –
***Home Builder Rejuvenation to continue into 2020  
***Arizona Forecast for 2020 – 
***Arizona #2 Most Affordable State to Live in US –
***Arizona’s Biggest Economic Development Wins of 2019 –
 ***What to expect from the Housing Market in 2020 and 2021 –
***Housing to help fuel Economic Growth in 2020 – 
***This Freeway Expansion should help the growing Population of Queencreek and San Tan Valley –
***2020 Real Estate Outlook for Real Estate and Lending – 
***SE Mesa could see 240K More Jobs – 
***Arizona #1 Migration Spot in the Nation – 
***1100 Acre Project including Residential  in Mesa moves forward and will create 55,000 New jobs –
Wear some GREEN this weekend, pinch someone on Tuesday & share positive thoughts of LOVE with others.

Let’s try our best not feed into this fear and instead keep positive out there!

The following email I received just a few minutes ago from our trusted lender partner Joe Smith of Epic Mortgage which I think is worth sharing with you as well if you’re interested in hearing from a veteran lender his perspective on the current state of affairs:
Pretty Crazy.
I’m sure you would all agree. I’ve been fielding a lot of questions, doing a lot of research on what is going on with the market. Talking to all my financial consultant clients and trusted advisors. Its hard to get a grip on it. Seems like A LOT of measures are being taken and they seem extreme. These measures WILL have an effect on EVERYTHING. We have seen the stock market drop 25%. Yes, 25%. That’s a VERY big decline. We have seen rates dip straight down- only to come roaring back up. (this morning we awoke to rates back in the low- mid 4’s). So the question really becomes how will this affect us in AZ real estate.

  1. Economy WILL slow. This will take some time to happen, but it will happen. This is why the stock market dropped- they are forecasting slowing numbers when companies report. The global economy along with almost all supply chains are being delayed. The good news to this, Asia seems to be coming out of it. S. Korea and China are seeing numbers reduce. Europe is in the middle of it and we are at the beginning. If done correctly, this should take 30-60 days to get a grip on the virus. We are at the beginning- but we also get the benefit of 3 continents seeing this and dealing with it. Hopefully we have learned something and can apply it. You can see the national economy taking a hit. Sports events are all delayed or even cancelled. That is a lot of revenue disappearing as well as income for people who support that industries. Same can be said for travel and leisure. Now, if you are in the toilet paper business- this is going to be your best year ever… The trickle down has schools closing for a while and other local events being cancelled. We expect some jobs to be lost- but this should be temporary. Once the fear and chaos goes away, the world will overcome and get back to business. This is not the first time this has happened, we just didn’t know about the others or they didn’t hit home (still haven’t hit home for me- last I checked there were 9 people in AZ with it and I think some of them were related….). With that said- I wash my hands and have realized I touch my face A LOT- gotta fix that.
  1. Short term issues for real estate will be something to account for. Any type of government slowing or shutdown will affect closings. Government is involved in quite a bit. Title reports and recordings start and end with the county- government run. FHA and VA loans are government loans. Wires are sent through the federal reserve- you get the drift. In the private sector, we need verifications from employers and other information that might be harder to get with any type of slowdown. We will feel it- understand that it could be coming and just be educated.

In closing, this is a lesson about educating your clients. Your education will set you apart from others. People will be scared- they want to know what’s going on and how this affects them. This will pass. Maybe it slows the market for a minute- but I doubt it. I think if anything it creates an opportunity for buyers willing to press through this knowing the sun will rise tomorrow. The last time we saw something affect the markets like this was the foreclosure crises. I bet if we all looked back we wish we did more to take advantage of that time….
As always, please call me with any questions or concerns and feel free to share this with your teams or whomever might want to hear it! Have a great Friday the 13th and don’t be scared!!
Joe Smith
Epic Mortgage LLC
602-741-4121 Cell Phone
Personal NMLS #267142
Company NMLS #1851442
Very Truly Yours,
Rebecca Hidalgo Rains