“I have to admit, even I am a little shocked at how fast the market decided to change. It is like we had a really hot summer day and a few days later, a blizzard. One weekend we were
Are We In A Market Shift?
Dated: June 12 2021
“Are we headed into the roaring 20s or a great depression that followed? As everything begins to open up, we have a lot of money that has been on the sidelines, and it appears people are ready to get out and spend it. Bars and restaurants are full, theme parks across the country are coming back online and the cruise ships are ready to hit the high seas with passengers again. Summer could not come fast enough after the cold, dark, COVID winter.
“But wait, housing never even realized COVID-19 hit nor that we had a winter. And as spring came around, housing sprung up like the newly blooming flowers and just kept picking up steam through April and into May where we experienced a 22% increase in median price over the previous year and we fell more than 60% in active listings. Cash offers, appraisal gaps, escalation clauses all were in full swing as the snow melted and the rains began.
“The question many ask is how long this goes and do these high prices continue? The FED is starting to give hints that interest rates will have to come up with inflation beginning to creep in. And many would argue that inflation did not creep in, it jumped in with both feet and is now crushing the middle class with higher prices in many areas of our lives. Food prices, car prices, housing and many other areas of our lives affected by higher costs and yet are not included in the inflation numbers.
“Summer is going to be hot in both temperature and housing if interest rates and inventory stay low. If either of those change, we can expect that to work itself into the housing market quickly. Personally, I do not see how the FED raises rates. The economy now is being run on cheap money and any change to that will end the ‘fun.’ So, summertime in the Rockies will be filled with concerts, fairs, and a tight housing market,” 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....