Unless you have taken social distancing to the point where you are living in a cave, it’s no doubt that your day is filled with news about COVID-19, unemployment and people disagreeing on when it will be safe to re-open the economy. But here in Colorado, we have our own good news. Coronavirus be damned, Colorado Springs has just been ranked the number one housing market in the nation.
According to Realtor.com, March searches showed that properties located in Colorado Springs received 2.4 times as many views as the national average. Homes in the area typically sold in less than 28 days, which is 32 days faster than homes in the rest of the country.
A Resurgence Due to a Strong Economy and Low Mortgage Rates
Many metropolitan areas have recently found a resurgence in their housing market because of a strong economy, low unemployment and low mortgage rates. It’s important to note that homes in Colorado Springs can cost approximately 46 percent lower than homes in Denver metro where the median price is $692,000. Realtor.com’s hottest market list tended to be smaller cities or those outside large, more expensive ones.
Will COVID-19 Derail the Momentum?
When it comes to Colorado Springs, prices have risen by 6.3 percent and are expected to continue to rise by an additional 5 percent within the next year. In order for a housing market to remain good, however, there needs to be a large inventory of homes as well as a good job market. Until COVID-19, the Springs had both. But our current pandemic, economic situation and unemployment numbers may prove to derail this momentum.
With things as they are, we are seeing that some sellers have taken their homes off the market. Some home buyers have also retreated to take a wait-and-see approach. At a time when the U.S. Bureau of Labor Statistics showed unemployment in Colorado Springs up to 5.5 percent in March, it’s hard to know how this will affect the housing market short-term. According to Realtor.com, new listings in the Springs dropped 40 percent in April from the same time last year.
Real Estate Professionals Getting Back to Business
In-person real estate showings have begun to resume. One of the downsides of selling a home during the pandemic has been the lockdown of showings. It is difficult to sell a home to someone who can’t see it in person. Meanwhile, the demand for homes in Colorado Springs is still exceeding inventory. This remains good news for sellers. And mortgage rates have remained low for people who are able to qualify in this landscape which is good news for buyers.
We at Front Range Mortgage cannot predict home prices or cure the Corona! But we can provide our decades of compassionate experience to help you and your loved ones get into your next home (or save a bundle on the one you are in already)!
If you are in the market for a home or refinance here in Colorado, call or email our local, Colorado Only Team for a Painless, 5-minute conversation to see how we can help!
As licensed mortgage experts in Colorado doing business in Colorado Springs as well as Denver, Grand Junction and throughout the state, we would be happy to find the mortgage that fits your needs best. Call us at (719) 540-2020 in Colorado Springs or (303) 500-1900 in Denver to see how we can best help.