“As kids returned to school, and families finished out their summer trips, we felt a slight lull. Social media in the REALTOR® world was discussing a possible stall. Are showings down?
The Tail Of Two Economies
Dated: March 12 2021
“Springtime is coming to the Rockies and housing remains in a full-blown shortage. With the median price range up on all properties 17.5% from last year, there is no relief coming into summer. Active listings took a beating, dropping over 50% and has led to fewer homes, more offers, higher prices, and buyers simply not having any inventory to pick from. At this time, strong financed offers are beat out by stronger financed offers, and stronger financed offers get destroyed by cash offers. Imagine being a buyer playing rock, paper, scissors, and every time you play, no matter what you pick, you get beat. It’s just not very fun and eventually you take your losses and go home. The problem is, there is no home go to. Rental pricing is pushing up, home prices are pushing up, and unless you get lucky as a buyer, you are competing against double-digit offers on every home.
“Meanwhile, sellers cannot add to the inventory for fear they won’t find a home either. This problem is occurring across the country. Every housing market is blazing hot. It is making it hard for people to make a choice on what to do with such limited options and it’s making our housing shortage even worse.
“Looking at the bigger picture, the U.S. economy is not just wounded, it is bleeding out. Every indicator from GDP to first-time unemployment claims, to the coming eviction crisis leads anyone watching this to realize the party has to stop at some time. Today, we found out in our local paper that across Colorado the lifting of the eviction moratorium may put one out of four adults out of their homes. And that appears to be from rentals alone. We have no idea what delinquent loans look like since the Federal Government placed a moratorium on those. The data we need to try and make an educated guess about the direction of our housing future simply isn’t available. So, the direction we take for the foreseeable future is going to be much of the same, until it isn’t,” 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....