By Mike Sunnucks | Rose Law Group Reporter
The Coronavirus and its jarring impact on the economy and everyday life came just the regional housing market was seeing stellar and record sales numbers.
Record low mortgage interest rates had been fueling robust home sales to start 2020.
Now, home builders have or are closing sales offices as the COVID-19 prompts states of emergency, public-health fueled business closures and ‘shelter in place’ behaviors.
“All the major home builders are shutting down their offices and doing sales by appointment only,” said Jim Belfiore, president of Belfiore Real Estate and Consulting in Phoenix. Many salespersonnel remain in sales offices with doors locked, still ready to assist buyers that have appointments.
Belfiore said the weeks leading up to the Coronavirus and its impact were the strongest in 15 years in metro Phoenix.
“Over the last 30 days, more new homes sold in the Phoenix metro Phoenix than any 30-day period since 2005,” said Belfiore.
Sales broken down per subdivision hit a record high of 4.3 sales per active subdivision, said Belfiore who has been extensively tracking the residential real estate market since 2006. The previous high was 3.7 sale per subdivision.
Belfiore expects the Coronavirus to effectively drive down home sales- at least over the next 60 to 90 days- with its economic and behavioral impacts.
“It’s inevitable. The traffic data will show slowing in the immediate future and sales will be impacted. Builders are going to work through backlogs as the government allows workers to remain on site and inspectors continue to visit sites,” Belfiore said.
“Buyers will return, I’m confident, as the pandemic fears subside, as long as record low mortgage interest rates remain. For now, we can feel good about the healthy spring the first 3 months of the year have brought us. The industry is putting more people in homes.”
