Phoenix Condo Market Shows Resilience During Pandemic

The Phoenix condo market is among the most active in the country, prompting Polaris Pacific to call the city “the most resilient in the wake of COVID-19.” Sales activity at 7180 Optima Kierland in Phoenix illustrates the strong for-sale condo demand through the pandemic. The project averages 4.5 sales per month and is now 85% sold, making it one of the best selling condo projects on the West Coast.

“Before COVID-19, the Scottsdale/Phoenix market was strong, with low inventory, growth in high paying jobs and our Arizona climate which continues to drive our market. We saw a slowdown when the pandemic first hit but once people overcame the initial shock, we saw it come back to near pre pandemic sales velocity at our Kierland project,” David Hovey, Jr., president and principal architect for Optima, tells GlobeSt.com.

The pandemic did have an impact on sales activity in the early months, but the home buying market quickly rebounded. For the initial two months after the onset of COVID, sales dropped by approximately 5%. But after that initial softening, sales returned to pre-COVID pace,” says Hovey.

The sales team also pivoted quickly to adapt to the changing market conditions, which ultimately helped to boost sales. “Optima Kierland has been an industry leader with the virtual sales process,” says Hovey. “The sales team began offering virtual tours to prospects over three years ago when selling the first building at Optima Kierland. With the COVID-19 pandemic, we elevated the online experience to make it more comprehensive and interactive for buyers.”

Prior to the pandemic, they also counted on strong demand from out-of-state buyers, giving the property a jumpstart on virtual tools to facilitate a remote buyer experience. “The first tool was to optimize the website to showcase the lifestyle, amenities and floor plans offered. The sales teams were then versed in guiding out-of-state buyers through this online experience. We also became adept at virtual tours and meetings,” says Hovey, adding that they were able to leverage these tools and redirect them to local buyers during the pandemic.

Hovey anticipates strong condo demand for the foreseeable future based on the market fundamentals. “If inventory remains as low as it is currently, interest rates remain as projected and job growth in Phoenix stays on its current course, our hope is that the market will remain strong,” he says.