By Corcoran Perry & Co Managing Broker &PresidentJennifer Young
Let's face it 2020 was beyond challenging, and for manyrelief was felt putting 2020 behind us. In searching for positivenews, the 2020 real estate market has a full highlight reel of arecord breaking recovery. The Denver Metro area ended the year withthe most number of sales on record. Not only did Denver salesskyrocket, so did those in Fort Collins, Colorado Springs and ourmountain towns. Colorado was not alone in breaking records, thenation as a whole did as well. No one could have predicted acounty-wide seller's market in the midst of an economicallydisruptive pandemic, social unrest and divisive political season,but the desire to secure a future and financial stability pushedhome buyers and sellers to put their fears aside and take advantageof the opportunity at hand.
According to DMAR's January 2020 Market Report, Buyerdemand for detached single family homes pushed the average closeprice up 17% from a year ago and a 4.8% increase for attachedhomes. Low interest rates have been the rocket fuel for theincreased activity and intense demand. Buyers took little to nowinter break in their search as January showing numbers are off thecharts and sellers are experiencing multiple offers once again.Demand continues to soar crushing the traditional selling, if therewas ever a time to sell a home now would be that time. It is anunderstatement to say that inventory is low, to put it intoperspective, you would need to drive past 544 homes before youfound one for sale.
If you are surprised to hear about our resort towns seeing a 50%increase or more in second home sales, don't be. The lowrates also pushed those who always dreamed of owning a second homeinto making it a reality. As many Americans reevaluate where theywant to live with the new found freedom of remote work, many areflocking to their favorite getaways.
For those who chose to refinance their home loan in 2020, a sighof relief was welcomed by reaping a yearly average saving of $2,300in the form of a lower monthly payment. Mortgage institutions alsocreated deferred payment plans for those struggling to make theirmortgage payments. 2020's big equity gains and loanforgiveness support should limit any short sale or foreclosure fallout in 2021. Interest rates hit record lows 14 times in 2020, andaccording to the January 14, 2021 Freddie Mac weekly PrimaryMortgage Market Survey, the average 30-year fixed rate mortgage is2.79% up slightly from the record low as the Treasury yields createpressure. The Feds have promised to keep rates low while oureconomy is on shaky ground, expect rates to sustain levels below 3%or near there.
The new year brings a fresh start and with that gives us all achance to redefine our priorities and reimagine our surroundings.The possibilities are endless, so if you are ready for a change,now is a great time to sell your home and make your dream future areality. Dream big in 2021. Best wishes to all.
The new year brings a fresh start and with that gives us all a chance to redefine our priorities and reimagine our surroundings. The possibilities are endless, so if you are ready for a change, now is a great time to sell your home and make your dream future a reality. Dream big in 2021.
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