Colorado Group Realty Insider - July 2020

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How’s The Market?

After two months of pandemic-induced hibernation, the Routt County
real estate market is roaring back. In June, more properties went under
contract than in any previous month in recent history. A whopping 132
properties went pending in June, compared to a paltry 38 in April when
in-person showings were banned.

This trend is playing out across the country as home sales have sped
up; properties are selling at the fastest pace in more than two years.
Nationally, pending home sales from May to June increased 44%, with
the largest month over month gain ever. While the market is extremely
active now, overall sales volume in Routt County is still down year over
year because of the exceedingly low numbers in April and May. Through
June, there have been 414 transactions totaling $273M compared to
543 deals for $329M in 2019.

Homes became families’ sanctuaries during the COVID-19 lockdown. In
the process, many Americans realized there were things they wanted to
change about their living situation. Single family homes, outdoor living,
more square footage and home offices are all features that are seeing
increased demand. Urban migration to the suburbs and more rural areas
has also already begun. This is apparent here in Steamboat as we’ve
seen an influx of new buyers looking to either move here full time or to
purchase a second home.

With persistent low inventory, and new construction that is not keeping
pace with demand, it likely means that homes will continue to appreciate
in desirable places like Steamboat. Conversely, densely packed urban
areas may start to see price relief. For example: during Q2 in Manhattan,
the median sale price fell 18%, the biggest decline in a decade.
Like most of the country, low inventory in Steamboat continues to
challenge home buyers with limited options. In previous years, active
inventory spiked around 20% in June but this year it stayed relatively
flat; this was perhaps caused by leery sellers who aren’t yet comfortable
with potential buyers touring their homes. We now have 395 active
residential listings down 29% from this time last year.