1. COVID-19 will likely result in a temporary shock to the Real Estate market, which is healthy for all markets especially when they have been as frothy as our market has been in Denver. It will cause people to think critically about their decisions. It will likely influence buyers to more thoughtfully consider a house prior to making an offer whereas in the past we saw buyers being more flippant about an offer. We will see the number of terminated contracts fall through from what was as high as 55% to a more reasonable 15%.
2. We can expect a swift response from the market. Sellers will still put their house on the market keeping a healthy inventory available to buyers. It is likely that we will see more sellers choose to move out of their house prior to putting it on the market. Showings on occupied homes are currently down 50+/-. We are seeing more showings on vacant properties. So, with interest rates being very favorable, the buying power for buyers is high so prices will stay steady for the next year or so before they begin to increase again.
With the volatility of the stock market today, real estate will be a safe haven for money.
3. We can expect to see the second home and investment real estate market stay steady. Providing an effective way for people to own and operate a second home or a rental property will be a key factor for this market. Property management companies of both second homes and rental properties will see an increase in business over the next year.
Most importantly, stay safe and at home right now. We’re all in this together and here for you if you have any questions.
STECK at Kentwood Real Estate DTC