Spring 2020 is one we won’t soon forget. A microbe brought the world’s most powerful economy to its knees. The financial impact has been severe and far-reaching, with more than twice as many Americans losing their jobs in April than in the last two years of The Great Recession.
For a housing market that had been booming—and preparing for some of its most active months of the year—the fallout of COVID-19 would surely have devastating effects, right? Not necessarily, or at least not yet. Recent reports of weekly mortgage applications nationwide signify a remarkable recovery in homebuying. And for Colorado Springs in particular, potential negative effects have been nonexistent. The city was recently ranked as the nation’s number 1 housing market by Realtor.com, and the stats and projections for prospective buyers and sellers remain strong.
What Are The Effects of COVID-19 on Colorado Springs Real Estate?
There’s a reason Colorado Springs is still the top real estate market in the United States. The Pikes Peak region is an incredibly desirable place for homebuyers of all demographics, and it’ll take more than a pandemic to change that. Based on the April 2020 market report from the Pikes Peak Realtor Services Corp, the regional real estate market is white hot. While new listings and sold listings are down from last year, you’ll see that home values in Colorado Springs continue to rise.
- Total Active Listings: 1,589 (Up +1.1% from last year)
- Average Home Sales Price: $395,725 (Up +6.6% from last year)
- Homes selling at 100.3% of listing prices (1.9% above historical average)
- Days on the Market: 20 Days (compared to historical average of 66 days)
- Average Sales Price Change: 9.1% (compared to historical average or 3.3%)
- Interest Rates Are Low, Hovering Around 3%
Numbers don’t lie, and right now continues to be a great time to buy, sell, or refinance a Colorado Springs’ home.
Of course, it’s a fluid situation and will take some time to stabilize, which is likely to cause challenges to the housing market this year. The good news for Colorado Springs, though, is that even with all the recent disturbance in the force, homes are selling quickly, and we still don’t have the inventory to meet the demand of affordable homes. Also, interest rates should remain low as our leaders and financial gurus try to navigate us out of this. So all signs point to an even busier and more lucrative real estate market in Colorado Springs when the dust settles.
Potential Long-Term Effects of COVID-19 on Real Estate
As everything continues to unfold through a year that will undoubtedly be shrouded in uncertainty, there is a real sense that despite the threat to our economy, the housing market will remain resilient. NAHB’s Chief Economist, Robert Dietz, predicts that housing is set up to lead the way as the economy rebounds.
But enough about the economy…
What’s happening now is being called “the defining global health crisis of our time” by the World Health Organization. There isn’t much that hasn’t changed as a result of COVID-19, including ourselves. We’ve gone virtual to find new ways to connect with family, friends, and colleagues. We’ve gained new perspectives. Some of us constantly “self-improved,” while others simply powered through. There’s no right or wrong way to persevere, no blueprint to cope.
There is a common denominator, though: we sure have been spending a lot more time in our homes these past couple of months, haven’t we? And that may have housing market impacts for the long run.
You may be realizing your house is too small, for one. Its deficiencies are becoming magnified. You love your husband and children, but my goodness an extra room or two to spread out certainly wouldn’t hurt. Couple our abundance of time to constantly wish and hope and search for something bigger and better with the strong possibility of another baby boom (we’ll let you connect those dots), a newfound premium on home offices and homeschooling setups—and we will soon be seeing increased demand for both real estate units and space.
Mindsets, desires, and needs have been forever altered for many of us, and it’s only a matter of time before it all begins to manifest within the housing market.
No Time Like the Present For Colorado Springs Real Estate
If you know you’ll be in the market to buy or sell in Colorado Springs but have been on the fence, there may not be a better time to start exploring your options. The future is always uncertain, even more so now, so it may be in your best interest to strike while the COS iron is still hot!
To discuss what’s best for your situation and your family, contact Tanya Stevenson at (719) 548-9900 or visit ParkAvenuePropertiesCO.com.