By Scott Gaertner
Surprisingly, Valley real estate markets are even hotter than the temperatures this summer. But many see troubling signs on the near horizon, and this could be the very best time to sell your Scottsdale North home.
The included chart documents the amazing recovery the local real estate market has made since the COVID-19 pandemic began in March. By any measure the recovering has been stunning, but might this be irrational exuberance? Describing his thoughts on the statistics displayed in this chart, Valley real estate authority Michale Orr of the Cromford Report says, “To be honest, I find this rather scary. This is not the behavior of a normal well-behaved market and it feels to me a little bit like the upward climb of an even bigger roller coaster than the one we rode in March and April.” Obviously his thoughts don’t spell a sea change in the market but, combined with other factors, this fall it is possible.
Cromford Market Index™ is a value that provides a short term forecast for the balance of the market. It is derived from the trends in pending, active and sold listings compared with historical data over the previous four years. Values below 100 indicate a buyer’s market, while values above 100 indicate a seller’s market. A value of 100 indicates a balanced market.
Foreboding For This Fall
The concerns for events coming this fall vary, but they are all wrapped around the national economy.
Presidential Election: For many, this election is viewed as a game-changing tipping point for the country. The consequences are viewed as dire and/or even catastrophic for the economy, the real estate market, and life in general as we know it.
COVID-19 “Second Wave”: The government incentives and CARE programs are running out very soon and, with or without more bailouts, a second wave could be devastating. There are so many easy examples. A fiscal cliff for families. Rolling business failures. In healthcare illnesses and surgeries have been delayed. Patients are suffering, and hospitals need these “elective” procedures to survive. The airlines and hospitality industries can’t indefinitely continue to provide service at the vacancies levels they have endured. Small retailers and restaurants are hanging on by threads. A second wave could be terrible economically and we are already seeing signs it could happen.
Irreparable Economic Damage Already Done: The bailouts and loans have been a temporary bandaid solution but what damage has already been wrought? We are just beginning to see which business will never reopen and thousands of others that will be claiming bankruptcy protection. State and local governments across the nation are experiencing budget crisis. The ripple effect on all the providers of those industries has to be enormous. And finally, what will trillions of dollars in bailouts do to the economy?
If you have been considering selling your home it is possible that right now—in the next 90 days –could be the best time to sell your home. Competition and interest rates are at all time lows. The available inventory of homes is 31% lower, and mortgage applications to buy a home were 33% higher than they were last year. If you are ready to sell you could be one of those people who sell at the very top of a market right before a major correction.
If You Aren’t Quite Ready To Sell But Would Like To
If this makes sense to you but you don’t feel you are ready at this moment, we can help. We have the people and resources to get your home ready quickly. We also have sold almost twice as many COVID-19 listings in Scottsdale North than anyone else and we are now seasoned in ensuring that we can get your home sold safely. Even with no in-person showings in your home.
If You Still Aren’t Sure
While the market is good you still can’t just throw your home on the market. There is much you can and should do to ensure you get top dollar for your home. If you are more of a self-starter and would like one of our free reports like “27 Tips On How To Sell Your Home Fast And For Top Dollar” or if you have been listed with no luck selling, “How To Sell A Home That Didn’t Sell,” go to QuickSellerTips.com.
