A LOOK ON THE BRIGHT SIDE
The year 2020 was a difficult one. We faced unprecedented challenges and encountered obstacles that many of us never contemplated before the pandemic. And unfortunately, REALTORS® have not been immune to these difficulties. But as we look back at the real estate industry in 2020, there are positives and things to be grateful for.
REALTORS® Deemed Essential
While many industries were shut down and unable to conduct business, the Arizona REALTORS® successfully lobbied the Governor to declare the practice of real estate an essential service. As a result, REALTORS®, lenders, escrow agents, appraisers and other real estate professionals were able to continue their business despite Governor Ducey’s “Stay Home, Stay Healthy, Stay Connected” Executive Order.
REALTORS® Showed Resiliency
Overcoming obstacles is often a key to success. This fact was demonstrated throughout 2020 by REALTORS® that changed their business model to put clients and customers at ease despite the presence of a highly contagious virus. Whether it meant conducting showings via Zoom, coordinating the use of a remote on-line notary, using electronic signatures to sign transaction documents, or converting open houses into appointment only showings, REALTORS® lead by example showing others how to conduct business while staying safe.
REALTORS® Afforded Financial Relief
The COVID-19 pandemic posed unique financial challenges to REALTORS® across Arizona. REALTORS® were therefore fortunate that, even as independent contractors, financial assistance programs ranging from small business loans to pandemic unemployment assistance benefits were made available. Furthermore, thanks to the COVID-19 Arizona REALTORS® Relief Hotline, members were afforded access to free legal assistance to help them navigate and apply for financial assistance.
New Home Development Soared
To increase inventory, new home construction is vital. Fortunately, in Fiscal Year 2020, the Arizona Department of Real Estate received a record number of applications from homebuilders seeking approval for a Subdivision Public Report. During the Fiscal Year, the Department processed over 1,000 applications, surpassing the previous ten-year high of 813.
REALTORS® not only Survived, They Thrived
One would expect that the harsh realities of COVID-19 forced many real estate licensees out of the business. However, that’s simply not the case. From December 2019 to December 2020, Arizona Department of Real Estate records reveal a 2.06% increase in the number of active real estate licensees. Similarly, license renewal rates remained very high during the same period.
Mortgage Rates Continued to Drop
In December 2020, mortgage rates fell again, descending to a record low for the 15th time in the 2020 calendar year. As rates continued to move lower, millions of borrowers were able to save on their monthly mortgage payments while loan applications to purchase a home were 22% higher than in 2019. Amazingly, for the first time ever, mortgage rates dropped below 2.7% according to Freddie Mac’s weekly Primary Mortgage Market Survey.
The Importance of Home
COVID-19 restricted travel, limited outings and even caused some to work from home for extended periods of time. As a result, many Arizonans came to appreciate not only their own home, but the importance of everyone having a place in which they can feel safe and secure.
For what was unquestionably a difficult year, it turns out that our industry actually has a lot to be thankful for.