We hope everyone is staying healthy and making the most of their time at home! We are in the midst of a rapidly changing reality. When it comes to real estate, that has left many of us wondering if, when, and for how long the housing market might be effected.
While real estate has so far seemed immune to the economic impacts of this global shutdown, we just don’t know if something more gradual and long-term might be brewing. Whispers of a recession are echoing among the speculations. And yet, even if that is where we are headed, there are so many more important factors to consider when deciding to buy, sell, or even lease. Economists at Realtor.com give us some alternative perspectives to keep in mind:
We are in Denver.
Denver is a very specific market. Two key factors that have driven the growth of our housing market (namely the tech industry’s employment provisions and the unbeatable climate) are not likely to be severely impacted in the long term. Any slowing is expected to turnaround quickly, even before the year’s end.
This isn’t 2008.
Many of the poor practices in place that led to the housing market crash have been remedied. We simply aren’t dealing with the same sort of exponential, unchecked growth we were then. Real estate is instead on a steadier, sturdier incline that will much less easily be thwarted.
Real estate is essential.
The sectors of the economy likely to experience the biggest impact of this shutdown are tourism and hospitality. In contrast, real estate has been deemed an essential business. People will always need shelter.
Supply is low, demand is high.
There are less homes in the country than people looking for housing. With a low supply, sellers will still be encouraged to sell knowing more than enough buyers are looking and they can fairly price their home. Low interest rates in contrast will encourage buyers to continue buying.
Is it the right time for YOU?
Rather than trying to time the market, economists at Realtor.com urge you to direct your attention to your own personal situation. Have you saved enough money for your down payment, closing costs, and six month’s of living expenses in case of an emergency? Do you have a good credit score in order to get the lowest interest rate? Do you intend to own the home for at least five years? Is owning a home what you really want or are there other goals that might be more important to you or more pressing at this time? Asking yourself these questions and honestly considering your answers is much more indicative of the right time to buy than any market prediction, good or bad.
In other words, don’t panic or make any rash decisions. Stay informed! Stay positive!
When you’re ready, Corken + Company is here providing you Real Estate Solutions Without Limits. Buy, sell, invest, or lease. We are here to help you take the next right step for you!