Spring Industry PredictionsPosted on Mar 31, 2020
Despite growing concerns about the current state of the COVID-19 pandemic, the real estate market has shown little signs of loss - according to the Denver Metro Association of Realtors. Real estate services are still up and running and we are working harder than ever for each and every single one of our clients. We are still closing on homes and making sure our clients' expectations are not only met, but exceeded!
Stated below are comprehensive predictions regarding 2020’s spring industry, and what our team believes you should be aware of as the year progresses.
Only a few weeks ago at the beginning of March, mortgage rates reached a near 50-year low and many homebuyers were excited about this news. While the rates are up compared to just a week ago, it is still a great time to buy in the Denver-metro area as this market remains healthy. However, the market will be affected if buyers no longer have motivation to purchase due to the ever-worsening health concerns. Regardless, this shift will take a hefty amount of time to get back to normal, simply because of the demand on Denver-Metro’s market specifically.
Although the industry is definitely enveloped due to the widespread panic of coronavirus, it will be the Federal Reserve’s emergency rate cut that will impact the market most. This cut was put in place to help avoid an economic slowdown due to the virus, cut borrowing costs, and stimulate the economy. Denver’s selling market is already extremely tight even under normal circumstances, which means the cut could potentially heighten this situation.
Keeping up with the fluctuations within the market the past three weeks has been challenging. This softening of the market is predicted to be followed up by a strong rebound once the quarantines and order is lifted. So it is critical that supply stays sufficient enough to meet Denver’s consistently high demands. If you want to learn more about what we predict to happen for the rest of 2020 within the industry, or need guidance during the current state of the market - give our team of experienced professionals a call!