Coronavirus impact on the Phoenix market

[Account Closed]

The thread on the Las Vegas market has been a major help providing leads for me to do more research and I'm really hoping to get more info on Phoeni. I've noticed some inspiring companies and jobs relative to manufacturing. Nikola, printed circuit board companies, machine shops, contract manufacturers etc. Plus the trades. GPEC is inspiring and the business climate seems more appealing than California. What do you think of Phoenix's future? I was also very interested in the BP thread on cash flow/appreciation were the only place other than the heartland of America was San Tan valley. Please Phoenix locals share. TIA

[Melanie Johnston]

@Alan Fortin it’s an interesting time in Metro Phoenix right now. We’ve gone from a super strong seller’s market with record low inventory to a seller’s market, with rising inventory and fewer “under contracts.” Still our inventory is half what it should be in a balanced market.

Consumer sentiment is expecting a big swing toward desperate sellers, but we haven’t seen that yet. All foreclosures are postponed for now, so we won’t know what’s happening there until the moratorium is lifted.

I listed a condo in Scottsdale for $353,000 and we received (and accepted) an offer within 24 hours, so you can see that conditions vary by location and price range.

I’ve already spoken to a few BP investors who are searching for buy and holds that will cash flow, which has been challenging thanks to rising prices. For small MF, this might be the first opportunity in several years to compete in a loosening market.

No question that the state of affairs is changing, so we watch the statistics of the Cromford Report, our local market analysts whose charts serve as our real-time real estate EKG.

There is great growth ahead, just look at the companies you mentioned, so this hiccup is a potential boon for careful investors who’ve “kept their powder dry.”

Melanie