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Home Sales Have Already Rebounded in the Valley

By May 8, 2020November 14th, 2022No Comments

By Angela Gonzales | Phoenix Business Journal

While home sales volume in metro Phoenix took a hit in April, the existing home sales market already has rebounded.

You read that correctly: Already rebounded.

Tina Tamboer, senior housing analyst for The Cromford Report, said home sales in the existing resale market were sharply lower in April, reflective of the six-week decline in accepted contracts following the stock market crash at the end of February.

Wall Street-backed investors who paid cash for homes — making it difficult for Phoenix-area homebuyers to compete — began to slow down their acquisitions when their financing began to dry up, Tamboer said.

Travel restrictions caused by stay-at-home orders and struggling investment portfolios put a damper on the luxury market and retirement communities, which were benefiting the most from inbound migration, she said.

What’s more, many owners of vacation rental homes, facing a dried up tourist season, listed their properties.

According to Arizona Regional MLS data, there were 2,696 contracts signed to buy resale homes the week of Feb. 23, Tamboer said.

Then the COVID-19 pandemic and stay-at-home orders caused everyone to hit the pause button. By April 5 — six weeks after the stock market crashed — 1,641 contracts were written, representing a 39.1% drop, Tamboer said.

Now the good news: Last week, 2,165 contracts were accepted, up 32% over a 3-week period.

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