With all that's happening in Denver with the rapid spread of the coronavirus, many of our buyers and sellers have questions about how it's impacting our real estate market. In general, we're still seeing a lot of market activity. While there might be a fair bit of trepidation, there are still plenty of sellers proceeding with listing their homes and plenty of buyers seizing the market opportunity. Here are some of the questions we're getting from our clients.
Is it safe to go on home showings?
If you have tested positive or been exposed to someone who has the virus, please suspend your home search until you are in the clear. Likewise, if you are in a high-risk group, you may want to reconsider or postpone your home search. For everyone else, a home showing with your real estate agent falls within the latest recommendation of avoiding groups with more than 10 people. To amplify your safety, you can œlook but not touch, wear gloves or use paper towels as a barrier, keep your hands away from your face, avoid handshakes, and use sanitizer with 60% alcohol, or carry good ole fashioned soap and paper towels in the event the home is vacant and doesn't have any supplies.
Should I hold off on my home search?
Are you in a high-risk group? Do you live with someone who is immunocompromised or over 60? Is your job stable? Can you get childcare during showings? Is your home currently under contract and you need to find a replacement home? The answers to these questions will help guide you, along with advice from your Live Urban Realtor. Low interest rates make borrowing money a whole lot easier and increase the amount of home you can afford right now, but you will need to weigh your own options and decide if it makes sense for you to continue your search or wait it out. Your Live Urban agent will take your cue on this. There's no pressure if your situation calls for a home search hiatus.
What's happening with open houses?
As of this writing, open houses are still allowed and being conducted. Agents are starting to put limits on the number of people allowed into a property at one time, advising people to keep a 6 foot distance from others, and taking other sanitary measures. Make a plan ahead of time with your agent: If you decide to allow open houses, what are the ground rules concerning number of people in the house and extra sanitizing measures?
What is going on with interest rates?
Interest rates are fluctuating daily, and you may have seen a recent headline declaring the Federal Reserve lowered the Fed Funds Rate to 0%. While it would be pretty cool to finance a house with zero interest, these lowered rates are what the banks charge each other for lending money overnight, and are not directly tied to mortgage rates. While rates have been rising and falling between 3-4% in the last few weeks, keep in mind these are still near historic lows. For more explanation on the relationship between interest rates and mortgage rates, check out our guest blog from local lender, Michael Delzer
Has the Coronavirus affected home showings?
Yes, but not by much. The week of March 9th showed a 10% decrease from the week of March 2nd for showing activity in the Denver real estate market. New listings were down just .4% during the same time frame, showing slight hesitation but not a big change overall.
How will the Coronavirus affect my home value?
This remains to be seen, but the Denver real estate market has withstood plenty of volatility over the past 12 years. And if the past is any indicator, we can look to the previous five recessions, three of which saw home prices appreciate despite the state of the economy. Denver's diversified economy remains one of the strongest in the nation.In addition, low interest rates that kept buyers in the market in the past, are in place e today as well. Inventory is still far below demand in the Denver housing market, making active homes for sale a hot commodity and driving appreciation for all Denver homes.
Should I sell my home or wait?
Are you currently living in the home with anyone who is immunocompromised or over 60? If so, you may want to hold off. Have you found a replacement home and need to sell to afford your new mortgage? Then it's time to list. Listings are still getting decent traffic and with the listing shortage we're currently experiencing, your home is likely to get buyer interest as long as it's priced appropriately. Ultimately it's up to you and your unique situation if you are comfortable selling right now. If you choose to move forward, you may want to consider providing gloves and sanitizer, cleaning surfaces and door knobs after showings, and passing on open houses where there may be more than 10 people at a time in your home. You can also talk to your Live Urban Realtor about virtual tours.
Our agents are reporting that their clients are œa little nervous but still hopeful and while some have decided to hold off, still others see opportunity and are moving forward with their home goals. Ultimately, buyers and sellers will have to decide for themselves if the timing and environment is right for them to be in the market. Please reach out to your Live Urban real estate agent if you have further questions. We're here for you and will keep you informed as things develop!
Word on the Street: What Our Agents are Seeing in the Market
œBuyers who just got their house under contract are full steam ahead. They are a little nervous but still hopeful.
œAn out of town buyer of mine is hitting pause until things clear up.
œThis has divided my business - some people have dropped out and others are motivated and see an opportunity.
œTwo sellers reached out to ask if it's a bad time to list. But they aren't making any shifts in their plans.
œCondo listing in Arvada has had a total of 21 showings with 1 offer in hand and 2-3 more coming in.
œStatus quo. Still looking and prepping houses to hit the market. However, I have made the decision to not do open houses.
œI have been showing houses all weekend. There is still lots of traffic and it's very busy. Properties we submitted offers for had multiple other offers.
œOpen houses so far have had a decent amount of people through, so I have not noticed much of a difference there besides people sanitizing before they walk through.
œI looked at a house on Friday in Wash Park that had just gone on the market and the listing agent had 4 offers by 11 am.
œMy sellers are going to list on Thursday and feel confident.
œI have two buyers (one in-state and one out-of-state) that want to "wait and see how things play out. Both love the low interest rates but are more apprehensive about the big picture of everything that's going on.
œI've seen it split 50/50. I have buyers and sellers pushing forward and crossing fingers. Some buyers are even thinking that this could be a great opportunity. I have a few buyers who did cancel showings.
œI've had one buyer hit pause because his stocks went down. Four other active buyers are going forward
œI'm getting questions about what the effects are going to be, but no changes in behavior. Buyers are still looking and sellers still planning to sell.
œI have just spent the morning showing property to a NICU nurse. Her advice is wash your hands! And stay away from the high risk elderly.
œLooking under $400K and we are still running into other people showing at the same time everywhere we go.
œTwo sellers cautiously sitting on the sidelines and asking about whether to move the list date up, push the dates back, or set up plan B and turn it into a rental rather than sell. Advising all of them as best I can with the knowledge that I have in front of me. Buyers are not hesitating and are moving along with shopping. As I preview homes, I'm seeing just as many other buyers out there shopping.
œI have two listings coming originally for April 1st. Both sellers are asking if they should wait. One does not want an open house. I told them we should wait and make a decision in 7-10 days, and meanwhile stay on our schedule and keep talking.
œBoth my out of state buyers are still buying. A couple ended up not coming this weekend because he is in self quarantine while his coworker awaits test results. We talked about lots of options for virtual buying. Their timeline to buy is the same.
œOpen houses were slow this weekend. One person that was interested just sent a message she is going to wait this out. On the flip side, two buyers have kept me busy seeing properties. They don't seem fazed at all. Still have three listings hitting the market in the next two to three weeks.
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