Will the Coronavirus affect real estate? With all of the fears of the unknown surrounding the Coronavirus, we wanted to show the precautions we have put it in place for your protection and also the potential impacts to the real estate market.
Some of the added precautions we are taking:
- No showings to anyone who is symptomatic or in quarantine status
- Use of hand sanitizer upon entering properties
- Encouraging buyers to look at all photos and virtual tours prior to scheduling a showing (to reduce unnecessary showings)
- Riding in separate vehicles to showings (to keep recommended distancing)
- FaceTime and virtual showings to our clients
- Limiting open houses to reduce outside traffic into homes
As of right now, we are still able to list and show homes to clients. While we do recommend taking extra precautions, this virus does not mean you cannot buy or sell your home right now.
Many people have questioned whether this virus will create another housing market crash. While some of the ramifications may affect the economy, this situation is completely different from the crash of 2008. The possibility of another recession will not be driven by the housing market itself. Compared to 2008, mortgage lending practices have become stricter.
Also, according to Corelogic, a recession does not always equal a housing crisis.
The fact that people still need a place to live will not change, even during recessions. People still have to move for various reasons, such as relocating for work.
According to Realtor Magazine, ShowingTime has begun tracking the potential impact of coronavirus on home tours. “Looking at the data so far this year, we have not yet seen a significant drop in national buyer activity,” ShowingTime reports. “There may be future effects of COVID-19, so the situation will be monitored closely. At this time, it seems most buyers and sellers do not regard seeing a few individual homes with their agent as a significant risk.”
Goldman Sachs even predicted gains for the 3rd and 4th quarters this year, indicating that this virus may only cause a temporary blip.
On another note, home prices have increased significantly over the last 5 years here in Colorado Springs. For example, the median price of a home in February 2015 was $225,000. The median home price last month in February 2020 was $341,000. Over the last 5 years the median price has increased over $100,000! In addition, homes are still selling extremely fast in Colorado Springs, especially in the more affordable price range. Our lack of inventory (only a 1.13 month supply) makes it even more difficult for buyers to find homes. So if you are seriously considering a move, don’t let the Coronavirus get in the way of that. You can always check out our spreadsheet to see more in-depth real estate stats for Colorado Springs.
We certainly understand your worries and frustrations, and as such will do our best to continue to provide a superior client experience. As always, if you have questions or concerns, please contact us. We are here for you and would love to help.
Don’t forget to check out some of our current listings!
What are your concerns with COVID-19 (Coronavirus) and real estate?