First and foremost, we hope you are safe and healthy during these challenging times. Our country has experienced turbulent changes in such a short amount of time. Our team is mostly remote under normal circumstances, so we are able to continue run our business while participating in social distancing. We are here when you need us.
2020 First Quarter
2020 had a very strong start. The average sales price jumped from $364,000 in December to $390,000 in March. That is a 7% increase during our market’s typically weaker months of activity. The dwindling inventory and increased buyer demand during the first quarter definitely contributed to the price increase.
Mid-March through Today:
As we all know, Colorado issued a Stay at Home order in March because of the COVID-19 pandemic. Surprisingly, there was very little slow down in the Colorado Springs real estate market during this time. In fact, there seemed to be surge of homes going under contract right after the Stay at Home order was issued. The rapid spread of COVID-19 created urgency for active buyers to secure a home before home shopping became more challenging or impossible. Sellers pushed their homes on the market with the hope of quickly getting an offer before the situations with the pandemic and economy further deteriorated. Average home prices over the last few weeks pushed just a little higher.
What will real estate in 2020 and 2021 look like?
All of the real estate numbers we have since March 13, 2020 are sales that were contracted before the shutdown. It will be interesting to see what happens in the market after April 13, 2020. We recently started tracking the daily changes in our market. If you are interested in following along with them, drop us a note (susanna@co-regroup.com) and we’ll send you a link to the data and graphs.
It would be impossible for anyone to predict exactly how this will play out in the real estate market. But here are several factors we are considering as we monitor this evolving situation:
- Real estate is usually slower to react to major changes when compared to the stock market. Our industry’s average 4-week contract time means that it can take longer to see any changes that are manifesting.
- 2020’s strong first quarter is a big advantage for the Colorado Springs market. We are one of the top ten real estate markets in the country and that gives us an advantage in facing this unpredictable situation.
- Spring is historically the start of the busy season for the Colorado Springs market. We anticipate pent up buying and selling activity from the shutdown to cause a rebound effect when it’s safe to resume business as usual. What does that mean? Our busy season might shift toward summer and early fall when the dust (hopefully) settles and people can start home shopping in person again. Or we might see people hold off until next year and trigger an exceptionally active 2021.
- Military moves are suspended through May 11 and they have a significant influence on our local market. If the military resumes issuing move orders in May, we could see a very busy, compacted selling season over the summer.
- Many people are suddenly losing their jobs when businesses close or reduce hours. This will change their ability to qualify for a loan if they had plans to buy a home and result in a reduced buyer demand for the market.
- Lender requirements have tightened. This has potential to keep buyers out of the market and reduce the amount of demand. This could reduce the average sales price.
- Evictions in Colorado Springs were halted. HUD suspended all foreclosures. Homeowners have been given tools to delay mortgage payments. Hopefully this will prevent loan modifications, short sales and foreclosures. If those types of situations start happening, we probably won’t see an increase in distressed properties until the 4th quarter of 2020.
Tips for Future Buyers
If you were planning to buy a home in the near future and have had to hold off, we have a few tips to put yourself in the best possible position when you’re ready to buy in the future.
- Take advantage of this time to research the home buying process. Our Steps to Buy a Home page is a great place to educate yourself on the details of every part of buying a home.
- If you haven’t already decided exactly where you’d like to live, research neighborhoods, schools, crime rates, and commute.
- Talk to a lender to learn details about how much you qualify for. Take a look at your budget and decide how much you want to spend. The lender can also give you detailed information about how much you’ll need to have for a down payment. This time is also an opportunity to improve credit scores if at all possible.
- Make a wish list for your future home and prioritize your deal breakers.
- Set aside cash for expenses like earnest money, inspections, and appraisals.
- You can also click here to schedule a free, virtual buyer consultation.
Tips for Future Sellers
We can’t say for sure when you should list your house. The bulk of the seller’s work happens before the house is for sale. You can put yourself in a position to put your house on the market as quickly as possible when the situation allows:
- Use this time to prepare you house. De-clutter as much as possible.
- Make a list of all repairs that need to be done and check off anything you can complete yourself.
- Start deep cleaning your home.
- Stage your home.
- Make a list of any items you’d like to purchase before listing (new welcome mat, new bathmats and towels, etc.)
- You can click here to schedule a free virtual listing consultation.
The bottom line: we are here for you. We will navigate these rough waters ahead together. Contact us at 719-321-0800 or email susanna@co-regroup.com.
