Well, it’s official. I can’t find one contrarian to say something like ‘the real estate market may not be as hot as people say’. I don’t know if it is because the press isn’t allowed to print that news, or if people really believe that markets are going to continue to be strong like before COVID 19.
From looking at markets from my vantage point in Steamboat Springs, it doesn’t seem like anything has changed from the beginning of the year. That being said, there are definitely differences when I research further. Some of the differences are:
– investors in the stock market are not buying in to stocks related to travel, such as airlines.
– even with pent up demand being active in real estate, the markets are still lower. Markets are supposed to continue to be strong because persons are able to view homes and purchase them rather than be home and out of the market.
– interest rates are giving real estate a shot in the arm, which has allowed first time buyers, second home buyers, and investment buyers opportunity.
– prices are going up in some areas. Prices are flat in Steamboat Springs with more listings lowering prices then have been in the recent past years.
– most everyone is considering the impact of a second wave of COVID in Fall and what that will look like
– there is definitely a large amount of people who do not want to live in the city metro areas any more and they are looking to move out. Some rural areas are feeling pressure, like Missoula, Montana, who is experiencing a hyper-competitive real estate market.
– not all real estate brokers are busy. I consider myself lucky to be real busy now. Some new and established brokers have no business and little prospect of business on the horizon.
– things are going to change after the government’s stimulus monies end and the extra unemployment monies households receive run out in the middle of next month. Currently persons are able to make their rent/mortgage payments with little need of forbearance. What this looks like in August is hopefully as good as it looks now.
Overall, demand is down more than what smart people on TV are saying it is. There are glimpses of what might really be happening in the market, but it’s really too hard to interpret this early into the bust/boom cycle. September and October will reveal much, especially after the September trend numbers come out in October.