COVID-19 News Round-up for May 26

Economic News 
Crisis’ April Housing Market Impact 
The coronavirus took its toll on metro Phoenix’s housing market in April, but the pandemic is keeping fewer home buyers on the sidelines in May. Home sales dropped and prices dipped last month after hitting a record high a few months ago, according to Arizona Regional Multiple Listing data. But the number of Valley homes for sale didn’t soar in April. (Source: AZCentral) 
COVID Crisis ‘Ravages’ Scottsdale Coffers 
Scottsdale gave unanimous approval to its fiscal year 2020-21 tentative budget after a call for contingency funds be added for community services ranging from rental assistance to adaptive service programing. The Council vote comes after city staff made changes to the draft budget, following an initial budget that was called “unrealistic” by the mayor and others, while COVID-19 impacts to the city’s revenue streams are best guesses. (Source: Independent Newsmedia) 
Opportunistic Multifamily Investors Need to Keep Waiting 
Out-of-state investors circling the Valley, waiting to swoop in and buy distressed multifamily units in the region may be waiting a while. Multiple experts recently stated deals are taking longer to close and lenders are becoming much more cautious in funding both acquisitions and new construction in multifamily. Interest, however, remains strong, as do the planned and under construction pipelines. (Source: Phoenix Business Journal) 
Where’s the Bottom for Retail Rents? 
Even more turmoil lies ahead for the U.S. retail sector as effective retail rents are projected to plunge 11 percent in 2020, according to Moody’s Analytics. This drop would be nearly twice the decline in retail rents that occurred following the Great Recession of 2008. It will also make retail the hardest-hit CRE sector. (Source: National Real Estate Investor) 
Pandemic Making Student Housing Market More Uncertain 
An already struggling student housing submarket could be exasperated if universities don’t reopen their campuses for the 2020-21 school year, according to Trepp. As universities reconsider reopening campuses or deploying remote teaching, the uncertainty regarding when announcements will be made makes executing leasing activities more challenging. (Source: GlobeSt.com)