In a recent article Colorado Public Radio reported reported that the Colorado Real Estate Market "Shrugged off the pandemic". We can testify of this in our valley: while the lockdown and its economic fallout spared few, the pressure on the Real Estate Market has been huge and is only growing!
"The real estate market across Colorado broke records in July as buyers raced to snap up a dwindling supply of homes for sale.
A record 10,771 single-family homes sold statewide, jumping 15.7 percent compared to June, and up 21 percent from the same time last year, according to a report from the Colorado Association of Realtors. The median home price hit $443,925, ticking up 4.5 percent from the prior month, and 8.6 percent from a year ago, the report found. That’s also a record high.
Deals are increasing even as buyers face limited options. Active listings dropped more than 11 percent from June, according to the report and 42 percent from last year. The lack of inventory and low interest rates is driving prices up while the economy shrinks and unemployment skyrockets due to the COVID-19 pandemic.
“There is a total disconnect with half the economy being crushed and yet, housing has mostly shrugged it all off,” Patrick Muldoon, a Realtor in Colorado Springs, wrote in the report.
More than half of statewide home sales occurred in the Denver metro region, which includes Boulder and Broomfield, the report found. The average price of a home in the Denver metro jumped to a record $601,863 in July, a 7.68 percent increase from June. Townhomes and condos are lagging behind the broader market, potentially reflecting a preference for larger homes and space to spread out with people spending more time at home, Denver Realtor Matthew Leprino wrote in the report."
Forbes helps shedding light on this contradiction. While the situation might look bad, it really isn't as bad as it is in other communities across the country:
"A second way to judge the relative attractiveness of markets is to see how badly the recession has affected them so far. We have very few hard facts as of now but will get more in the next couple of months. The first fact we do know is that 13 percent of all jobs in the US were lost in April. How did individual markets measure up against this average?
At the good end, the Utah markets (Ogden, Provo, Salt Lake City) lost around 7 percent of their jobs. The big Texas markets were right behind along with Phoenix, Birmingham and Washington DC at 8 to 9 percent."
In Colorado the Unemployment rate fell to 7.4% in July.
The desire for a better lifestyle makes buyer look at Colorado as a safe heaven to weather crisis. Our valley is one of the most attractive places to live in the World and it's been proven to be more resilient, if not benefit from the pandemic!