What are the potential effect of COVID19 and Real Estate in Colorado Springs? They say opinions are like noses, everybody has one. More and more I am hearing speculation from people on what THEY think the current crisis will do to housing.
Since I’ve made my living in this business for the last 29 years, I decided I would throw in my 2 cents worth to the conversation. The following are a list of my predictions / observations / and yes, opinions on the subject.
1. We are going to have another baby boom. This may sound funny, and obvious, but when you lock consenting adults into a small space for an extended period of time, these things happen. Start buying the gifts and cards now, while you can get them! Impact on housing will be to increase demand for both units and space.
2. Interest rates will remain low. At least for a while. Neither political party is going to want to see rates jumping when debt is how they plan to fish us out of this. Impact on housing will be to increase demand.
3. Apartment living will become less desirable. With “social distance” needs and too much closeness to neighbors during the crisis, more people will be throwing in the towel on apartment living. Impact on housing will be to increase demand.
4. Home offices will become even more important. We’ve seen this trend for years, but with this crisis, we will see even more work situations allowing / encouraging it. Impact on housing will be to increase demand, both for units and for larger houses with more rooms.
Home schooling will become more of ‘a thing’. With E-Learning options becoming more viable, and with the necessity of home schooling for the time being a reality, more families will consider this a real option. Some families have been worried about ‘thought viruses’ infecting their kids for years, this will be a good excuse to do something about it. Impact on housing will be to increase demand, both for units and for larger houses with more rooms to provide space to do it.
Let’s face it, ALL of our houses have shrunk with the need for us to stay home. Many will feel the need for a larger home after this, with more rooms. We had unprecedented low unemployment and economic growth happening prior to this crisis. Even WITH the pandemic, homes are selling very quickly here (our median days on market is currently 6 days!), and we still don’t have nearly the inventory of affordable homes that we need. Once sanity returns, I think we will have a VERY busy real estate market, with prices rising even further. That is really happening WITH the current crisis. It will be even more pronounced once it is passed. Despite COVID19, real estate in Colorado Springs will continue to thrive.