Luckily my wife works for the government and has stability with her job (and income).

They are putting in a $2 billion government agency building in the area and it should be completed by 2025.

As far as the selling market goes it is shaky due to rates fluctuating and lenders having to get stricter on guidelines and not offering some government loans.

@Guifre Mora rent control is a great example of government intervention hurting those very same people - Tenants - it's intended to help.

After the housing bubble of 2008 the federal government implemented a first time home buyer credit of $8000.  

The challenge is that we don't have enough data yet to really look at the numbers and make any meaningful predictions or summations of the effect so far.There will likely be an increase in supply for the coming months in the Phoenix market, as the Covid crisis will undoubtedly push some homeowners in foreclosure, force some AirBnb investors to sell off some properties, and kick the iBuyers out of the market for now and force sellers to sell via traditional means if needed.It may be reasonable to expect a short-term recession (and I mean super short term, as everyone is hoping this will be over in 60-90 days), but it's not reasonable to expect a massive depreciation of home values or another foreclosure crisis like in 2008.Home prices in the Phoenix market have risen consistently since 2013 (like most of the country), but not outside the affordability range of average home buyer with a median home price of $265k or so.If the majority of average buyers can weather the storm with government aid and such, then we should be ok and bounce back fairly quickly once the pandemic subsides. 

With the passage of the CARES Act and the payroll protection program, the federal government is setting aside funds for the Small Business Administration for banks to loan up to 2.5 times your average payroll for the trailing 12 months.

How many people have a strict policy?

The loan money from my parents is coming from their relatively small life insurance policies (they have bigger ones) that simply reduce the death benefit by exactly what we still owe, and so my parents don't care if we pay the money back or not.

Shutting down is straight forward and will depend on the reservation policy.