What will our real estate market look like if we go through another outbreak of the coronavirus? We’re receiving this question a lot. 2020 has been very uncertain, but from what I’ve seen, I have good news on this front.
During the first outbreak, there was a government-mandated shutdown, people were stuck in their homes, and businesses were temporarily closing. From what I’ve heard, another shutdown enforced by the government is unlikely because it had such a huge economic impact. Afterward, we saw a V-shaped recovery, which is great news. It’s called a V-shape recovery because the economy went down quickly, then rebounded sharply, much like the letter ‘V.’ If the economy declines again, we will likely see another upward rebound shortly thereafter.
Here’s why: We have been selling about 1,200 to 1,400 houses monthly for the last couple of months, and there are currently just over 1,100 properties on the market in the Pikes Peak region. We’re seeing a ton of pent-up demand, though the rate of new home construction can’t keep up. Building materials and appliances can’t be delivered as quickly as before (for example, General Electric switched to making ventilators during this time). Also, no one knows what will happen after the presidential election.
Overall, there’s still plenty of demand. If the pandemic hits hard again, we may see things slow down for a season. It may take until next spring or summer to fully recover, but our local economy is healthy and will persevere. We have strong employment and military here, and people are commuting from Denver and purchasing homes. We have a solid outlook, even if we take a few more punches.
If you have specific questions or are considering selling your house, please reach out via phone or email. If you’re thinking about buying a home, we currently have interest rates under 3% for a 30-year fixed mortgage for the first time ever. Whatever your needs are, we’d love to help you.