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2020 Real Estate Expectations vs. Reality

Aug 1, 2020 | Buyers, Sellers | 0 comments

The summer months continue to be about as strange and bizarre as the rest of 2020, including real estate expectations.  I saw a post the other day that said everyone who answered the question, “Where will you be in five years?” in 2015, was flat out wrong! Such as it is in 2020 but our team at Newman Realty looks at the Arizona seller’s market with hopefulness and a bit of nostalgia.

Arizona Seller’s Market

Despite a ton of uncertainty in the global, national, and local economies with regard to economic growth, unemployment, and recession; the Arizona seller’s market continues to be driven by high demand and low inventory of available homes.

If you are considering selling a property, this is the strongest seller’s market I have seen through 16 years in the industry.  It is reminiscent to when I first started in real estate in 2004.  At that time, the market was also red hot and the struggle for buyers was quite similar. This is also how 2020 started – real estate expectations were that growth would continue without pause.

Then the reality of COVID-19 hit the news in April 2020 and we saw a brief pause. None of us were sure what was going to happen with Stay at Home orders, mask mandates, online education, and the cancellation of group events from weddings and networking events to sporting events and more. It is all unfolding at remarkable speed.

As real estate agents, we had to figure out how we were going to interact with clients and how we were going to manage access to occupied homes, whether representing sellers or buyers. There was no framework or for what we should be doing. We walked through it, made changes, tried to be as smart and practical as we could, and tried to counsel our clients with the best information we could obtain.

Business continued during the Stay at Home order and surprisingly demand remained relatively high even through April and May. As we come into the second week of August the Arizona seller’s market and the overall housing market is full steam ahead and not really looking back, somewhat different than real estate expectations. Most homes that hit the market are selling on the first weekend, many with multiple offers.

One of our recent Gilbert listings received 34 showings the first weekend on the market and had 11 offers submitted. The selling price was bid up to $15,000 over the asking price. This scenario is being repeated all across the Gilbert area and so far there is no sign of things slowing down. Although it’s impossible to know where things will turn, even in the near future, it’s clear that today’s market is strongly advantageous to the seller.

We offer specific advice to buyers and sellers and strongly encourage all of you to be careful with advertisements that offer something that sounds too good to be true. It likely could be. We are always watching our industry for new or innovative tools or processes that may be of value to our clients.  We know the details of some of the more heavily advertised offers being presented and can offer the clarity and confidence needed to move forward with educated decisions.  Always seek the personal counsel of a trusted advisor so that you know they are working on your behalf.

Whether you’re thinking of selling and/or buying, the team at Newman Realty is here to help! Our team has the experience and understands the market because we are full-time real estate agents who live, network, and work in the Easy Valley. Call us today to learn more!

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