The Centennial State seems to be holding up well even as the COVID-19 threat continues to loom over everyone. But no other sector in the state has managed to make quick adjustments and rebound in such a short span of time than the real estate sector here
Painful hit
When the pandemic hit around March and April, the entire country was placed under lockdown to curb the rate of COVID-19 transmission. The economy took a beating as many businesses were temporarily shuttered or forced to operate under minimalist conditions to keep with the call to shelter in place. Even interest rates were dropped to keep the economy afloat
In the real estate scene, many home sellers became fearful of overall economic conditions and pulled out of the market. This was a major factor behind the slump in market activity this spring when in previous years, this time would usually be the peak season for home buying and selling.
Rosy forecasts
Turns out, things are just a bit delayed in Colorado’s real estate market
This summer, the state is setting record-highs in terms of sales, driven by several factors: demand that got stalled in spring due to COVID-19-related restrictions, the continuing dearth of housing inventory, and the unprecedented lows in interest rates.
As of June 2020, the Colorado Association of Realtors has reported a spike in sold listings at around 64% from the previous month for the entire state. Moreover, a whopping 99.5% of these sold properties were bought at their listing prices. Market observers and experts are now debunking naysayers with data for the Denver Metro Area showing the 32.3% jump in pending/under contract deals in July from the previous month – proof that Colorado is far from a housing crisis
Process adjustments
Many aspects of real estate transactions have already gone digital even when COVID-19 was still unheard of. When the pandemic struck, real estate agents simply had to bring the remaining non-digital segments of home buying and selling to the digital world. Moreover, for parts of their processes that still required face-to-face interaction, safety protocols were put in place.
It is no longer uncommon to hear about people who bought a home without even seeing it personally before closing, thanks to 3-D interactive tours that have taken the place of pre-pandemic open houses. If the buyer wishes to see the home personally before sealing the deal, a contract may already be prepared for the home. Upon arriving, they have to observe social distancing, wear face masks and gloves, maybe even take off their shoes before entry. The seller’s agent should also be prepared to disinfect any surface that the buyer has come into contact with
The situation with office spaces
Denver has manifested an increase in vacant office spaces since the start of the pandemic, driven by state-enforced restrictions that pushed many businesses to realign operations and allow their essential workers to work from home. However, not all companies are ready to give up these commercial real estate investments
As Colorado slowly revives its economy, local businessmen are seen to bring back a good number of their respective employees to the office while the rest continue to work remotely. Some employees actually welcome the idea, having missed the warm human interaction that cannot be replicated in a Zoom video conference.
There is much promise seen in the Colorado real estate market as it flouts the uncertainty brought about by this continuing health crisis. Don’t get left out from this opportunity – contact the Noel Team to know your real estate options. Get in touch with us today by clicking here.
