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I’m getting lots of calls about what’s happening in the Colorado Springs area real estate market.
This is video is to show you that our real estate market is strong, how:
Home sales are still happening – even with a lockdown, how I predict we will NOT face a market correction as a result of this pandemic, and the Real Estate Market will be stronger when the Stay at Home Order is lifted and we have some great solutions for people facing job loss or people who won’t move at this time. I’m Barb Schlinker with Your Home Sold Guaranteed Realty Colorado. At the end of this video, I’ll be sharing with you how you can get a FREE report on the 8 New Marketing Laws to Sell Your Home for UP to 11% More.
Recently the Governor issued further clarification that agents cannot do in-person showings but we can accomplish the tasks to complete the transactions including inspections, appraisals, walkthroughs, and closings. Its been 7 days since that order and 278 out of 1225 homes in the Pikes Peak Region have gone under contract. How is this happening? In the past week I MYSELF HAVE sold several homes via video or without in-person showings. Three of my listings have gone under contract sight unseen because we routinely create videos of our listings so buyers can view not just still photos but video tours. Only pre-approved, serious buyers get access to the homes AFTER they have a contract! And when they do INSPECT THE HOME after going under contract, we have ensured the home is supplied with gloves and wipes with our No Touch Showing Kits!
Many people fear the market will drop as a result of this Pandemic, similar to the mortgage meltdown of 2007. I’m here to prove to you that is not true and here is why:
#1 The Mortgage Lending World is Vastly Different: During the housing bubble of 2004-2007, it was NOT difficult to get a mortgage, in fact, you could just tell the mortgage lender you make X per month and as long as you had a credit score above 580 you could borrow any amount you wanted. Interest rates at the time were nearly double what they are now. Today’s interest rates are at historic lows and its harder to get a mortgage than before the housing bubble. People by law have to substantiate they have the income to afford the home.
#2 Housing Affordability: Our average home prices have increased by over 54% since the housing bubble crash. Yet because of the low-interest rates and increased wages, housing is more affordable than it was at that time. Yet our rental rates are higher than the national average. It’s actually less expensive in the area to buy a home than it is to rent a home. Plus 44% of this market’s economy is based on Aerospace and Defense. That industry has good job stability.
#3 The Inventory of Available Homes is Still Very Low: For the past several years, we have been selling more homes under $400,000 than we can re-supply to the market on a monthly basis. In the past 3 months, home from $400,000 to $500,000 has gone from 65% of those were selling per month to a whopping 98% of homes from $400,000 to $500,000 are sellers per month.
#4 Best of all, fewer people in this area are in a negative equity situation, meaning they have not borrowed more than the home is worth. So, if there is a job loss situation where the home is no longer affordable, the lenders have recently put protections in a place where their credit will not be harmed if they cannot make payments and we can sell the home fast for cash and for top dollar. If you know anyone who is facing that situation and needs to sell please call us, we can help.
My prediction is we go back to normal operations, is… there will we a surge of homes that go on the market. Yet, because the interest rates are at record lows and our housing inventory is low, there will also be a high demand for homes as well. If you are thinking of selling your home and would like to find out what to do and what not to do to get your home ready for sale, we are open and ready to help you, please give us a call at the number on the screen. As promised if you would like to receive your FREE report on 8 New Marketing Laws to Sell your home for Up to 11% More, call us or click the link provided. Thank you and we wish you well.