COVID-19 Housing Market Update
Are people still buying homes?
People have all kinds of reasons for moving and may not have a choice about the timing. While some may postpone buying right now, many experts report that some buyers see opportunity in buying, given the low rates and relative lack of competition for what continues to be low inventory in for-sale homes.
We are seeing this in our market in Colorado Springs, where we continue to welcome our Military families and rank among one of the best cities to live. In just the last two weeks our team has had 9 closings, 18 homes under contract, numerous (virtual) buyer consultations with new buyers ready to start their search, and many (virtual) listing appointments with sellers needing to make transitions at this time. There is real estate activity and vendors tied to our industry are moving things along and many have found ways to do it virtually, as we have.
An article in KRDO featuring Bull McAfee with Empire Title says that people are still buying and selling. “This market is so hot. I’m a native here and I’ve never seen the demand that we have right now,” he said. Interest rates have decreased and it is making the market appealing for first-time home buyers. “House prices are up 9 percent, median and average are over 9 percent,” McAfee said.
Many Realtors, including the Treasure Davis Team, are moving to virtual consultations, virtual showings, even have a tour of the home right from your phone or computer.
*Sources: KRDO News
What happened in previous recessions? How is it different this time?
Amid the Coronavirus, there is much talk about the prospect of a recession. We always turn to and trust Keeping Current Matters for all the resources they are putting forth in contribution to this discussion and we encourage you to read a few of their recent blogs / research:
According to KCM – what is taking place today is nothing like what happened the last time. Their article 5 Simple Graphs Proving This Is NOT Like the Last Time states the S&P 500 fell by over fifty percent from October 2007 to March 2009, and home values did depreciate in 2007, 2008, and 2009 – but that was because that economic slowdown was mainly caused by a collapsing real estate market and a meltdown in the mortgage market.
This article by Keeping Current Matters about the link between recessions and home values states that this time, the stock market correction is being caused by an outside event (the coronavirus) with no connection to the housing industry. Experts are saying the current situation is much more reminiscent of the challenges we had when the dot.com crash was immediately followed by 9/11.
No one knows for sure how deep this will all go. Goldman Sachs anticipates we will see a difficult first half of the year, but the economy will recover in the second half. Check out the article and Graphs in KCM’s article Economic Slowdown What the Experts Are Saying
In times of uncertainty, one of the best things we can do to ease our fears is to educate ourselves with research, facts, and data.
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