No Fall Slow Down and Sellers Rejoice

Dated: October 16 2020

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“Many think that fall brings a slowing down of the housing market. As September wrapped up, kids went back to school, or didn’t, we once again realized that housing is not seasonal in the Pikes Peak Region. It appears that it is not going to cool down as the weather changes. Even as new listings increased, we doubled down and had even more homes go under contract. And all price points were once again up. Which could be a copy and paste each month here.

 

“Nationally, we continue to get bad news across the board. New unemployment claims continue to be high and the retail industry, restaurants, movie theaters, airlines, hotels and more are getting crushed. At some point, all of this will have to balance out. If we do not see a correction in the employment side at some point, we will have to see a correction on the housing side. The two cannot run independent of each other forever.  Low interest rates have arguably added to the higher prices and yet we’re not calling this inflation? Yet, the items we need the most have risen in price, but are not included in the government’s inflation numbers. From housing to groceries, Americans are feeling the pinch of inflation.  

 

“Gold and silver are great indicators of inflation and/or economic stability and we’re seeing both rise in value lately. Even after they pull back, they begin their rise again. This could be the canary in the coal mine. Add to that FHA, VA and Conventional loans continue to see very high delinquencies. FHA is now posting a 17.4% delinquency, which is catastrophic.

 

“Regardless of what we try to forecast, the fact is, housing continues to surprise most. And, with interest rates low, demand high, and the Front Range being a destination place for many who move, our housing continues to be on very solid footing,” said Colorado Springs-area REALTOR® Patrick Muldoon.

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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....

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