By Paul Maryniak | Scottsdale Progress
The abrupt economic downtown created by the COVID-19 pandemic is doing something to the the Valley’s housing market that hasn’t occurred for months – driving up the inventory of homes for sale.
But with unemployment rising in the wake of the coronavirus, that likely won’t not be great news from anyone’s standpoint as sellers may not be finding as strong an appetite to buy a home as there had been only a matter of weeks ago.
Fears of close physical contact with strangers shared by sellers and buyers – combined with potential buyers’ concerns for their own financial health – are throwing water, at least for a while, on what had been one of the nation’s hottest housing markets, experts say.
“Cromford, the greatest source available to us in analyzing the resale market, is spot on in its analyses. Sales are slowing, particularly in mid-and-upper price points. Given the low level of supply, and the stay at home nature of the current slowdown, we do not foresee a dramatic change in home prices, though. As it relates to mortgage rates, Zillow’s comments herein miss the point. Rates have increased over the last 2 weeks, but the increases have nothing to do with lenders’ concerns about a slowing down in the market and everything to do with the unintended consequences of recent government instituting forbearance rules for mortgage holders in default for non-payment. Rates are negatively affected when the government unilaterally suspends terms within loan contracts.” ~ Jim Belfiore