Why hasn't COVID 19 slowed the Denver Real Estate Market?
With unemployment sitting at around 10.5% in Colorado right now, COVID-19 spiking in many places across the United States and the national news fixated on a stagnant economy, why is it so difficult to buy a house in Denver right now?
You may be asking yourself this very question. All economic indicators should have buyers pausing purchase decisions. Uncertainty about the future has traditionally caused real estate markets to slow down. But this time is different. Why is that?
I have a few ideas on what might be fueling the demand for real estate in the Denver market right now.
First of all, It is extremely cheap to borrow money. Interest rates sit at 3.14% for a 30-year and 2.66% for a 15-year fixed-rate mortgage. Cheap money translates to more purchasing power. More purchase power, coupled with a home value which is likely the highest its ever been, have most homeowners considering their options.
Second, I feel the COVID-19 has most people evaluating their living situation. With more time being spent at home, it's natural to ponder what it would be like to have a larger yard, a second office, or no more building elevator.
A third reason why COVID-19 hasn't slowed the Denver Real Estate Market is the lack of inventory. I feel like a broken record, with the needle stuck repeating a familiar phrase but the numbers continue to support this fact.