Searching for your dream house in beautiful Colorado is an exciting endeavor. If you’re considering buying a home here in the Centennial State you might be wondering, how has the pandemic impacted the real estate market?
As the lock-down lifted slightly in May, the real estate market in Denver revived itself with new listings flooding the market. Pending offers surged after in person showings re-opened, as buyers are looking to take advantage of record low interest rates.
Whether you are just starting to look or want to understand what is different about the market now, we've collected some useful information. Luckily, the Denver real estate market maintains a smoldering burn despite adjustments caused by the pandemic.
Different From The Great Recession
Fortunately for home sellers and buyers, experts note that this slump is drastically different from that of the Great Recession in 2008. The Recession impacted the economy and home values so significantly that hardly anyone was buying, new home construction came to a grinding halt, and many lost their homes.
Now, however, buyers are still interested. They are merely shifting their searches online and finding alternative solutions to social distancing restrictions. Calling the outbreak of COVID-19 a “black swan event that put a strong economy on hold,” the Colorado Real Estate Journal stresses that thanks to the economy before the virus and government response, we may not see as much financial devastation as we did in 2008-2009.
Modern Solutions For Modern Problems
Around the second week of April this year, Colorado’s stay at home orders eliminated in-person showings for real estate marketing. After the announcement, a record 761 withdrew their listings from the market. While this number was startling, it also reflected that homeowners were comfortable enough financially to pause on selling their homes.
Those still selling quickly put together virtual touring options, while online viewing exploded. While business has slowed in general, activities like new construction and renovation, inspections, and final walk-throughs were still happening during the shutdown. This indicates a strong level of interest in viewing and buying despite hurdles caused by the virus.
Gradual Return To In Person Showings
Now that in-person showings have opened again as of mid-May, realtors across Colorado are taking extra precautions to ensure the safety of their sellers and buyers. In person showings now involve extra procedures for sanitation.
BWBacon Homes and Re/Max realtor Heather Bacon noted, “when you’re showing property now, a lot of it has to do with wearing gloves, agents have to wipe down surfaces, and everyone wears masks. Some sellers want you to take your shoes off or wear booties. You have to be open and understanding that every seller has different requirements on how to walk through their home, and you just have to be willing to do that.”
Expect The Unexpected, Be Prepared
As Americans in general get more comfortable with uncertainty as the norm, home buyers naturally have new questions on how to approach viewing and analyzing properties in a saturated, sanitized market. So what is important to remember when starting your home search?
Align yourself with a seasoned agent. Their expertise and knowledge are key in getting the type of property that you want. Once you find a property, seek out a lender you trust and make sure that you are not just pre-qualified but also pre-approved for your loan. Read more on tips for first-time home buying here.
Bacon also added, “I think the big thing is be realistic about your expectations. People want to find that unicorn of a house, and it may be out there if you’re willing to wait, but if you’re a serious buyer you have to have realistic expectations. Given the pandemic and the new way of showing property, our market is moving very quickly.”
It can be challenging navigating these waters with things changing on a daily basis. It's also challenging as a first time home buyer to understand potential hidden costs that are a part of the process. We recommend doing your research online and signing up for virtual tours of homes before you decide you truly want to look at them. Take a look at this quick summary of the May-June market in Denver, and we wish you the best of luck with your home search. If you have any question or need a real estate resource, reach out to Heather Bacon to find out more.
Here at BWBacon Group, we know and live what you are experiencing as an employer or job seeker in Denver, Boulder, Dallas, San Francisco, New York City or any of the other cities we work in. We believe great recruiting starts and ends with understanding people.
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