Colorado Group Realty Insider - April 2020
This is one of the most challenging times to answer the question: “How’s the
Market?". First, let's address the strong results through the end of March. Total
sales volume in Routt County was $133M, up from $113M through the same
time last year. While there were more than the typical amount of contract
terminations in March, the vast majority of pending transactions closed on
schedule. In fact, sales volume for the month was up 15% compared to March
of 2019. Of course, almost all of those transactions were initiated before the
pandemic spread across the globe.
Currently, showings on new or active listings are not allowed, however
pending contracts are moving to the finish lines as activities such as appraisals,
inspections and walk-throughs are still occurring. With no showings permitted,
that means that new pending contracts have come to a screeching halt.
Experts estimate that real estate transactions in the U.S. could be down by
close to 75% for Q2 and potentially 50% for the year.
April is typically the start of listing season and when the influx of spring
inventory begins to hit the market. This year, that won’t be the case, as the vast
majority of potential sellers choose to wait until the current situation changes.
Although some of those sellers may alter their plans to sell altogether, this
will likely result in a flood of new listings once the environment allows. Given
our very low inventory (only 351 active listings in Routt County), supply will
continue to be strained until then. While some buyers are using this time to
look for bargains, the reality is that until this pent-up supply is added onto the
market, prices will likely hold steady.
While no one knows exactly when the economy will re-open and how quickly it
will bounce back, there are some categories that will probably hold their value
better than others. Local housing and single family homes under $1M should
stay in high demand, while luxury homes over $2M and investment properties
may see weakened demand as tourist visits may be down significantly.
It is certainly an interesting time in Steamboat and around the world. Colorado
Group Realty has never been more proud of our tagline: “Neighbors. Friends.
Realtors.” We are here for you in any way that you may need.
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