So far the tailwind of historically-low mortgage rates are prevailing over Wall Street and COVID-19 concerns.
Buyers are still active. Properties are still closing. Moving trucks are still showing up at people’s homes.
Open house traffic has declined, but we notice plenty of buyers looking for property. (one of our open houses last weekend had over 40 visitors)
For many, the interest rates are just too good to pass up.
We even see instances of multiple-offer situations for properties priced right in high-demand locations.
Rates today, compared to 4%, equate to not only a monthly savings for those refinancing but also equates to tens of thousands in additional purchase power.
For the average price of a home on the Front Range, the savings is $171 per month and the increased purchase power is $35,811.
Here’s what we expect to happen over the coming months. Listing inventory and transaction volume will both decline. We will no doubt see lower activity compared to a year ago.
But thoughts of the market “coming to a screeching halt” can’t be validated because of the historical performance of our market and because of the inherent fundamentals in place.
We will continue to track the numbers and communicate the facts so that you remain well-informed.
Before you decide to sell, be sure to seriously consider the risks of putting your home on the market right now. Talk with your Windermere agent to discuss your options.
❱ While open houses generate interest and traffic, groups are hard to control, and we want to practice “social distancing” when we can. We recommend only allowing showings by appointment; this ensures that only serious buyers enter your home, reducing possible spreading of the virus.
❱ Consider vacating the property from list date to offer review date by staying with family or friends or at a short-term rental.
❱ Wipe down surfaces following every showing of your home.
❱ If you start to feel sick or have knowledge that you have been in contact with someone suspected to have COVID-19, take your home off the market immediately.
❱ Ask your agent to pre-screen buyers before they enter your home to ensure they aren’t ill and have not potentially been exposed to the virus.
❱ Place a placard in the entry of your home requesting that any person who has recently been ill or may have been in the company of someone who is suspected to have COVID-19 to not enter your home.
❱ Provide hand sanitizer throughout your home.
❱ It’s common for sellers to provide protective booties for buyers who tour the home; consider also providing disposable gloves.
❱ Leave interior doors open so that buyers who tour the home don’t have to touch the handles when entering rooms.
❱ Disinfect your home with proper cleaning supplies after every open house.