As far back as mid-March, Governor Doug Ducey began closing down bars, movie theaters, and gyms in an effort to curb the spread of COVID-19. By the end of March, he issued his "Stay Home, Stay Healthy, Stay Connected" Executive Order. This encouraged the practice of social distancing and limiting any excursions outside of the home to essential travel only, such as grocery shopping, picking up prescriptions, and work. Many non-essential businesses closed their office doors and either furloughed employees or sent them home to work. With so many people out of work, we hear talk of a recession looming. This might frighten anyone trying to sell their Tucson home right now. But rest assured. Even if we do hit a recession in the upcoming months, that does not mean that a housing crisis in the Tucson real estate market is sure to follow.
Tucson Real Estate Market During/After a Pandemic
Recession
First of all, a recession and a housing crisis do not necessarily go hand in hand. Health experts say it could take anywhere from 12 to 18 months to find a vaccine to fight COVID-19. Until then, social distancing and self-isolation (especially for those most vulnerable to the deadly effects of the virus) are strongly encouraged. But we have already begun to see these stay-at-home orders begin to lift in other parts of the country. Governor Ducey has not yet announced any definitive answers to whether he will lift his "stay at home" order, extend it past the April 30th deadline or begin his own tiered reopening of non-essential businesses in the states. Whichever way this all plays out here in Arizona, eventually, we will get back to "normal"...even if that is a "new normal". Our country has made it through other economic hard times before and we'll make it through this one, too.
The Housing Market During a Recession
Even if we do find ourselves in a recession (and nobody knows for sure that will happen), keep in mind that people still need a home. Buyers need to buy. Sellers need to sell. The housing market itself isn't the driving factor in a recession. If you own a Tucson home and need to move to another city for work, you still need to your house. And if you sold your house right as the pandemic took hold here in Arizona, you still need to find another home to live in. However, you might not necessarily need to buy or sell right now. And that's fine, too. You need to make the best decision for you and your family. If you do want to buy a Tucson home, now's a great time to get a loan. Interest rates are at their lowest levels ever. So, borrowing money to buy a home has never been cheaper than it is right now.
Just a Bump in the Road
Eventually, the pandemic will end. It may be a few weeks from now. It might take a few months. But, it eventually will end. Our economy will rebound. So, take a breath. Talk to your REALTOR® about the best course of action to take for your needs right now. If that means buy/sell right now, great. If it means to wait a bit, that's fine, too. As long as we work together, we'll get through this.
Rebecca Schulte, Schulte Real Estate Group, Your Source for Tucson Real Estate
