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Standing Strong With You
Coronavirus and Real Estate Update
Today we’re in uncharted territory. The full impact of the coronavirus pandemic is yet to be known as it surges through our daily lives, schools, workplaces, businesses, and communities.
While the situation unfolds, the plunging stock market and global market volatility are hitting hard – and more swings are expected.
But let’s pause to take stock.
Thinking back to 2008, the financial crisis was sparked in the real estate sector and led to a banking crisis.
However, today, our economy and housing market are far stronger and more resilient.
Our economic fundamentals are solid, and as a nation, we have seen the longest economic expansion in history since WWII. Moreover, we are not experiencing the same weaknesses in the housing market and lending system as we once were.
According to Chief Economist Dr. Lawrence Yun with the National Association of Realtors (NAR), “Conditions today are very different than the last boom/bust cycle. In 2004 we had a huge oversupply of new homes. In 2019 we still have a huge undersupply of new homes. In fact, we haven’t been building enough new homes to keep up with demand in over a decade. During the last downturn, there was the subprime factor and the variable interest rate. Now there are fewer variable rate mortgages and virtually no sub-prime mortgages.”
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Colorado and Boulder County outperform the nation.
Colorado is well-positioned as a top economy nationally. Real GDP growth in Colorado ranked 7th in the nation year-over-year, and the state’s five-year average ranks 5th, reports leading state economist, Dr. Rich Wobbekind, with CU-Boulder’s Leeds School of Business.
Meanwhile, Boulder County’s economy has been outgrowing the state economy, he says, and is uniquely able to weather a recession. Boulder County’s economic vitality is fueled by a highly educated workforce and diverse ecosystem of industries including government research facilities, aerospace, biotechnology, cleantech, and information technology – industries that endure in the long term.
Our strength is local.
Boulder ranks #1 the nation for home value stability and growth for the fifth consecutive year, according to SmartAsset. Based on our extensive data and market analysis, we know that we have a healthy housing market.
Even through the grim days of the Great Recession, home prices only declined by 5% and recovered quickly post-recession. If you held onto your home for at least six years, there is no period when you would have lost money on your investment.
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Perspective over panic – a time of opportunity
As challenging as it might seem in these daunting moments, taking a long view can shift our perspective from the current panic to balance. As a stable, long-term asset, real estate tends to generate more wealth over time than other assets and is often more insulated from market shocks.
Here are the latest 10 vital statistics we track to keep our pulse on the market.
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- People are continuing to buy and sell real estate, with over 50% of all homes on the market in Boulder County currently under contract.
- We are still seeing multiple offers on showings on some properties. Recent decline in the number of showings per available listing may be indicative of impacts from COVID-19 and its effect on the stock market – or it may reflect difficulties for out-of-state buyers to travel to see local properties.
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With interest rates at a record low, for buyers, now may be an excellent opportunity to purchase the home of your dreams. For sellers, lower interest rates increase the pool of buyers for your home.
Despite formidable economic headwinds, through federal stimulus, supportive measures, and proactive coronavirus containment, the uncertainty and panic will subside.This global pandemic is temporary.
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Standing strong with you.
Our Realtors here at RE/MAX Elevate have seen slowdowns and shutdowns, fast-changing market flux, and recessions. With seasoned backgrounds and expert knowledge, our unrivaled Realtors have been guiding and advising our clients through thick and thin.
When we tell you that the Boulder Valley real estate market is the best market in the country, the most resilient, and that we will all get through this with our largest investments – our homes – in better financial shape than before, we are speaking from hard-earned experience that no one else has.
The coronavirus is our crucible, but we been here for you, we are here for you now, and we will be here for you in the future.
To safeguard your health and that of all our friends, family, and the community, our Realtors have implemented new policies and practices to keep everyone safe and healthy while continuing to serve you and your real estate needs.
More people in Boulder County have put their trust in RE/MAX Elevate, and we are honored to continue to be your source of real estate information in turbulent times.
Please reach out to me with any questions or if I can serve you in any way.
We may be social distancing and staying home, but I am here by your side – and I will always have your back.
We all wish you and your loved ones care, comfort, and health.
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RE/MAX Elevate Office:
724 Main Street
Louisville CO 80027
Phone: (303) 974-5005
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