Colorado Governor Jared Polis announced this week that Denver real estate brokers will resume in-person showings next Monday. Previously, real estate services were deemed an “essential service” but showings were expressly prohibited for the last two weeks. That brought the market to near collapse.
Now the question remains. Will the Denver real estate Market rebound to it’s it’s usual Spring frenzy?
Obviously, no one knows for sure. But, let’s examine the variables. In real estate, it comes down to supply and demand. Remember, in the last 7 years years Spring produced record buyer demand and limited supply of homes for sale. In Spring, the most homes came onto the Denver market and the most homes sold. This was the “best” quarter market for real estate. Spring was the white-hot, frenzied market.
More Denver Homes Usually Sell in Spring
I’ve been selling real estate since 1978. Even then, Spring was the “Magic Time”. The grass turn from brown to green, trees budded and flowers blossomed along with home sales. Spring quarter was always the best quarter for Denver real estate based on the number of home sales. Maybe, that’s due the deadlines for children to start in schools comes in August. Perhaps, some people want to be sold, closed and moved by the time school starts. But, whatever the reason, sales traditionally spike in the fall
This year, Covid 19 arrived about the same time as those first hints of springtime. So, we retreated to “safe showings” and no open houses beginning on March 19 with Denver Mayor Handcock’s executive order. But, that window of selling was short-lived. On April 6th, the Colorado Attorney general clarified that “essential business” in real estate does not include in-person showings. After that, both he and the Governor clarified that showings could include photographs, videos and virtual tours.
Problem is, those listings only showed the most favorable parts of homes. Listing brokers were obligated to omit unfavorable photos. Would you ever contract for home without seeing in person first.? Most people didn’t want to either. So, sales dropped by almost 70% until now.
In Person Showings Resume Monday
But, beginning next Monday, in person-showings will be allowed following appropriate CDC guideline. So, those who need to buy or sell can do it as safely as practical. Sales will again likely increase. Because, buyers will once again see homes with their own eyes. Most experts doubt they will traditional Spring levels of around 7000 sales per month. But, sales are likely to increase due to the pent-up demand. Some people need to buy or sell. Of course, many discretionary moves will still be postponed. But, expect competition to increase to some degree as well as some multiple offers in some market segments.
Also, some potential buyers will be on the sidelines dues to job losses, health concerns or from general caution. In addition, the drop in the stock market might slow down the Denver luxury real estate market in particular.
Available Listings Likely To Increase
Some of our potential sellers have been waiting for showings to begin again. They need to sell. So, they will likely list in the next few weeks to take advantage of the selling season. I am hearing similar things from other Kentwood Brokers in weekly sales meetings too. In fact, many sellers have waited since November for a more favorable time to sell. Spring is also the time, historically, when prices increase the most. Will that happen again? Who knows what will happen this year?
By the end of the first week in May, the direction of this market will be clear. But, right now there are more questions than answers about how in-person showings will change the Denver real estate market.
Still, we at The Hotz Group and Kentwood Real Estate will be ready to help our friends and clients with whatever real needs they have during this time.