“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
Economic Disconnect 2020
Dated: August 14 2020
July featured hot weather and an even hotter housing market. We hit the summer run with a 14.4 percent increase in values in one year across all properties sold. As we continue to see low inventory in our area, the prices keep pushing double digits. We had a 37.6 percent drop in active listings and there is simply no good housing news for buyers related to selection and price. The one bright spot was lower interest rates however, prices quickly pushed up taking away that buying power.
“On the flip side, we are pacing at the highest unemployment numbers since the great depression. Since COVID-19 hit, we have seen massive unemployment claims every month across this great nation. At this time there is a total disconnect with half the economy being crushed and yet, housing has mostly shrugged it all off. Like the stock market, bad news is good news for both, it appears. The total number of business closings is catastrophic. It is estimated by many that a third of all restaurants are simply not coming back. Small business is getting blown out, people are not working, and yet housing continues to be unaffordable.
“A few things to watch as we move forward locally and in the nation include unemployment claims, business closures, interest rates, FED purchasing of all assets, gold and silver prices, and inflation. The FED has literally printed trillions of ‘dollars’ on a screen and gold and silver prices show that people are nervous. Gold pushed above $2000 per ounce and silver flirted with $30 per ounce. The 10-year yield continues to sit at record lows and low interest rates are starting to push prices up. Food prices are increasing at an alarming rate and we need to remember that everything that is inflating isn’t counted towards inflation, housing and food included.
“For sellers in our region, the story remains the same, it’s a great time to sell. There is very little competition and plenty of approved buyers. Buyers beware, and not for the normal reasons. There is going to be very little to pick from and you are likely going to compete many times before finding your home. Patience is key in our current 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....