Covid-19 is nearly irrelevant – Buyers and Tenants need a place to live and homes availabe are scarce. They mask-up & keep shopping!
Strange Facts: July 2020 Closed Sales will near all-time high … Active listings will near all-time low
In the market report for last month, I stated that June closed sales would rebound from the May slump to be close to the number recorded for June 2019. As shown in the chart to the right, June this year actually was a bit higher.
The closed-sales for July will be considerably higher still, while closed-sales last year followed the tradition pattern of decline starting in July. In fact, the dollar-volume of closed-sales through July will be the highest ever in 2020. Again, this is NOT a prediction. It’s a fact dictated by the volume of transactions in escrow and to be closed in 30 to 60 days from July 1.
Only something of the scale of covid-19 could cause closed-sales volume to vary like is has in 2020.
Extremely strange, especially considering the high volume of sales, the number of homes available for purchase has gone through the floor, as illustrated below.
Why have the number of “Active” Maricopa County listings gone so low? Because the homes available were mostly sold and there were not nearly as many new listings. This is a great market for sellers … and landlords. The situation for rentals is similar.
New-home construction and sales continued right through the covid-19 confusion in March and April. And amazingly, as reported in the STAT report linked below, the difference in median price for new-homes and resale homes is only about $60,000. As noted there, some investors are buying new homes for their rentals inventory.
Unemployment is very high, the impact of which has not yet been felt in the housing market. While the closed-sales for 2020 through July are certain to be a record high, what’s going to happen starting in September is anything but certain.