“There’s the higher end of the market and there’s a lot of demand in the higher end," said Ed Pinto, director of the American Enterprise Institute Housing Center.
Their data shows Phoenix has always been a boom or bust market, and he says a bust could be pending.
People in a wealthier tax bracket who can still work from home will likely be fine, but there are many who aren’t so lucky.
If they’re unemployed now, government programs like additional unemployment benefits and mortgage forbearance may be ending soon.
“What happens is the land prices go up, and when it comes under stress the land price goes back down. And that’s what causes the house prices to recede. So in Phoenix, what we think is going to happen in high-risk areas, is there will be an increase in foreclosures," Pinto explains.
Local real estate lawyer with MacQueen & Gottlieb, Benjamin Gottlieb, isn’t as worried. He says low interest rates and supply and demand could keep prices from crashing despite COVID-19's impact on the economy.
“I do think due to a low inventory you’ll have numerous real estate investors lined up to purchase those foreclosed properties, so for those reasons, you may see a downward trend in prices but I don’t think it’ll be significant," Gottlieb explained.
The one thing that is not in doubt, as long as the pandemic goes on, is there will likely be a risk in the housing market.
“I think there’s potentially more reward because if you lock in a record low interest rate, that’s going to be there for a while," Gottlieb said.
Below is a list of housing resources for homeowners: