My Blog

Market Update Amid COVID-19

3/23/2020
Hello, 

Thank you for checking in on the market with me. I will continue this post on a monthly basis. Please email me at pricewilson830@gmail.com if you would like this emailed to you monthly. 

All of my market data comes from Megan Aller with First American Title serving the Denver Metro Area. You can find current, day by day stats on her Facebook page here: https://m.facebook.com/agirlandhergraphs/
Impact of COVID-19 in Denver

  • Showings in the Denver Metro Area were down 50% this past Saturday, March 21st compared to the past 7 years. Many buyers have put their search on hold and are waiting until they are more certain of the market. However, this can still be a great opportunity to look at homes and find a deal without a competitive offer situation due to less buyers on the market. 
  • Most title companies like First American Title are still open for business allowing real estate to be bought and sold. For now they are only allowing the necessary people at the closing table and keeping most interaction over the phone or by mail. 
  • We are not expecting to go into a rescission like we were in back in 2008. From 1999 to 2008, several loans were given for 100% of the property value or up to 125% of the property value in hopes of appreciation. In 2008, a lot of homeowners had low equity while their home started to depreciate. They ended up owing more on their home than what is was worth. With the unemployment rate shooting up to 10% in Denver, people were jobless and had to foreclose on their homes.
  • Since 2008, home loans have been heavily regulated. There are more income requirements and more loans coming in at 80% of the property value. In 2020, homeowners have much more equity built up in their homes than they did in 2008. This is a good indication that we will not see a repeat of 2008.
  • Price reductions on homes have gone up. February 2019, 29.5% of homes had at least one price reduction before they sold. February 2020, 53.9% of homes had at lease one price reduction before they sold. Realtors are being asked to wait longer on price reductions since showings are reduced. 
  • Denver Metro Association of Realtors (DMAR) has advised against holding open houses. They recommend showings to be one group at a time and the home owner is to turn on lights and keep doors open so that nobody needs to touch anything in the home. 
  • Odds of selling were at an all time high in February 2020 at 62.1%. This is a great stat that I will be watching closely when the March results come in. We started 2020 stronger than the past 7 years.
  • iBuyers, like Redfin, Opendoor, and Zillow have halted business. iBuyers make offers on homes at a lower price than what they can sell for on the market. They are able to close on transactions very quickly which is needed for some home sellers. They are afraid of building inventory during the outbreak but plan to be back in business once it is over. The link below is an article if you would like to read further on iBuyers:
https://therealdeal.com/2020/03/23/amid-uncertainty-zillow-is-latest-ibuyer-to-press-pause/
Please let me know if you have further questions about the market.

Price Wilson / REALTOR®
Berkshire Hathaway HomeServices<br /> Innovative Real Estate
Berkshire Hathaway HomeServices
Innovative Real Estate

Cell 303-818-2615
pricewilson830@gmail.com
11990 Grant St. Suite 500
Northglenn, CO 80233
Page:  of 000  |