Supply and demand are the typical eb and flow of the pricing of most products. With high demand and low supply comes a push-up on prices. In the world of real estate, we are experiencing a 63% drop
Housing and COVID???
Dated: June 11 2020
“The obvious side effect of COVID was that people would keep properties off the market. In the Pikes Peak region we saw a decrease on active listings of 12.4 percent for single-family homes and -8.8 percent on townhome/condos. No real surprise since we were in the middle of our first pandemic and a total shut down of our economy. Toss in the many unknowns and sellers were on hold. But for the sellers who did not hold off, it did not hurt them. Site unseen showings, virtual tours, and virtual open houses took over and demand remained high. We were up 7 percent on median sales price despite the pandemic over this time last year. Supply and demand took over pushing prices up while inventory dropped.
“Now that we are out of total lockdown, we have seen buyers back in the market. Many believed that with 40 million unemployed nationwide there would be an opportunity to buy. But, once again, the buyers were let down when they re-entered the market to find out multiple offers were still coming in and cash was still king. The lack of new listings has kept supply short and prices on the rise. It appears most of the bad news from COVID has left the local housing market unharmed.
“Nationally, we hit record heights of unemployment and the FED was fast to pump in trillions of dollars of bailouts to anyone with a hand out. From small business, unemployment supplements and stock buys, the Federal Reserve along with our central bank is flooding money to every sector. It is very difficult to know what the ramifications of printing so much money and then dumping it into circulation will be because we have never done it to this extent. We’ll have to keep an eye on that and see but as far as housing goes, buyers continue to struggle and sellers continue to be cashing in,” said Colorado Springs-area REALTOR® Patrick Muldoon.
I have many interests and hobbies to supplement my busy career in real estate. Although I enjoy my work I also enjoy finding free time to enjoy the most important things in life. This includes being w....