In today’s world, there are a lot of unknowns and many of us are unsure of what is happening! While we can’t answer many of questions surrounding what is going on, there is one topic we can answer questions about….the real estate market!
In Northern Colorado (north of Longmont), thus far for the month of May we have had 430 properties come to market from $199K to $9.5, and 225 properties go under contract up to $1.23. There are today, 265 Single Family residences available in the city of Fort Collins and 136 attached properties. For the 75 Single Family Detached properties that have closed May 1st through May 18th the average closed price is $525,254 and last year in 2019 the average price on closed SFD property May 1st through May 18th was $461,514 with around the same average days on market too at 56! In Fort Collins for the month of May to date we have had 97 single family detached properties come on the market in all price ranges from $199K to $1.395. and 69 SFD properties have gone under contract within the city of Fort Collins within the last 2 weeks/18 days!
As reported in an article dated May 14th, 2020 REALTOR® magazine, Lawrence Yun, chief economist for the National Association of REALTORS®, sounded cautious optimism about where the economy is heading and highlighted positive indicators in the residential real estate market at the Residential Economic Issues and Trends Forum on May 13 at the 2020 REALTORS® Legislative Meetings. Yun predicted that steady and even rising home prices could point toward healthy home sales numbers once the economy reopens, and he saw signs that jobs could also rebound as stay-at-home orders ease.
He also drew attention to the fact that personal income was up by 2% and personal savings jumped a remarkable 152%, related to curtailed household spending as the pandemic spread. Yun was hesitant to gauge the mindset of savers but offered more than one interpretation. “Are they waiting for the economy to reopen?” he said. “Or does it imply pessimism? There is certainly more money available.”
And while clothing stores, sporting and hobby stores, and department stores all saw steep declines in consumer retail spending over the same period a year ago, building materials and gardening spending actually increased by 10.4%, a hopeful indicator. “People are upgrading their homes,” Yun said. “When the market reopens, that housing will go up in value. People are remodeling, working on lawn care. All things you do to sell a home.”
Yun also saw reason to be optimistic on the potential for home sales once the economy picks up steam. Of particular note were home prices, which he said were strong. “There is no meaningful downward trend,” he said. “If anything, they appear to be rising.”
Yun pointed to the current housing shortage as the source of the stable prices, and he predicted that the shortage could grow even more severe given that the usual spring increase in listings didn’t occur this year. He suggested that as the economy reopens, people will be ready to list. He noted that Georgia, which is beginning to reopen, could be a model for what we will see in the rest of the country as restrictions ease. “Listings are popping out,” Yun said, “and buyers are quickly grabbing homes.”
He added further that healthy home sales are possible even when the job market is uncertain. “Even in high unemployment times,” he said, “60 to 70 percent have employment. And we have record-low mortgage rates. The situation could be good.”
So, what does this all mean? There is indicators and data available to us now, that suggest that it is a great time to be a seller. For buyers, your dollar goes further now more so than it has in the past, with rates still at all time record lows. Which allows you to purchase more house for a smaller payment!!!
Are you confused by all this, not sure what pertains to your situation? We are here to help, just click CONTACT ME to connect!
*parts of article date May 14th, 2020 reprinted for informational purposes. Data obtained from IRES for time period of March 1, 2020 through April 30th, 2020. All information is deemed reliable, but not guaranteed.