Before Coronavirus struck, Colorado Springs was having record sales each month. Homes in the area were only taking about 20 days to sell with a median price range of $360,000. And our local economy was doing great. It's likely that many agents would have broken their yearly sales records based on where our market was headed before the virus.
On March 27th, the State of Colorado issued a Public Health Order. This required everyone that is not considered "essential" to stay at home. At first, Realtors in Colorado were considered non-essential, then essential, and now we're back to non-essential as of Monday, April 6th.
Agents are being told that they should not leave their homes for any real estate related work, other than closings on existing transactions that are already under contract. Once a contract is signed, then you leave your home.
This has changed the way we do business. Buyers have to view the home online, write a sales contract contingent upon their approval after viewing it in person, and then schedule the showing to view the home. You can imagine how difficult it is to operate this way. Needless to say, there are many terminated contracts due to this process.
Agents can’t show homes or do any other real estate work that involves meeting people effective 4/7/2020.
People are losing their jobs as businesses close or reduce hours. This changes their ability to qualify for a loan, and thus reduces buyer demand for homes.
The military is a big part of our community, and have a significant influence on our local real estate market. Military moves have been suspended through May 11thand rumor has it that this date will be pushed into July. How long it will take for the military to once again issue move orders will affect the selling season.
Lender requirements, interest rates, and mortgage payment forgiveness are creating an insecure mortgage loan environment. This has the potential to keep buyers out of the market and reduce the amount of demand.
Evictions in Colorado Springs are halted, and HUD has suspended all foreclosures. This will prevent loan modifications, short sales, and foreclosures. This will affect the number of distressed properties on the market.
Spring is usually the start of the busy season in the Colorado Springs market. Now, pent up buying and selling activity from the shutdown to cause a rebound effect when it’s safe to resume business as usual. So the busy season might be delayed into summer or even fall.
No matter what the real estate market has in store for the great state of Colorado I am here to help you get into the home of your dreams. Our Lease 2 Own program allows you to find a home that you want to rent, but may also like to buy in the next up to five years. Contact me to get the best offer today.