Coronavirus & Real Estate in Steamboat Springs
COVID-19 and the Real Estate market in Steamboat Springs. Working from home these days. But, real estate is still open for business. In fact, we’re headed into “mud season” and a natural slow-down in real estate.
The novel coronavirus and resulting economic fallout is sure to have some ripple effects on the Steamboat Springs real estate market. However, with rapidly changing conditions, it’s unclear just what they will be. We don’t foresee huge changes but for some buyers and sellers, this environment is a bit unsettling.
As more and more COVID-19 cases are being confirmed in Colorado, and even in our small town of Steamboat Springs, it is prompting precautionary public health responses like Steamboat school closings, event cancellations, and voluntary quarantines, slowing spending, but this is only temporary.
So, what does this mean for real estate here in Steamboat Springs? Over the next few months we will see a contraction of transactions. I’m seeing some properties come back on the market that were previously “under contract.” Since many of our transactions are second homes and thus discretionary purchases, I’m assuming these buyers have added reservations.
Some cautious sellers might withdraw their properties to relieve the risks of showings. This will result in a further decline of inventory. Regardless, the Buyer demand is not going away, showings are still happening, and we don’t expect a housing market downturn. The Steamboat Springs market will always be cushioned by our ski mountain which just announced their first expansion in 20 years, so we urge both sellers and buyers to not be reactionary in their real estate endeavors. The real estate market has been challenged before and will be challenged again, and every time we are little smarter and act a little more wisely. This too shall pass, and I feel real estate will pick back where we left off a month ago – STRONG.
Since the collapse in 2008, banks have had significantly more safety buffers and have passed “stress tests” in an effort for history to not repeat itself, resulting in U.S. banks having great capital and liquidity buffers so they can keep lending. Homeowners and prospective buyers responded last week to the plunge in mortgage rates caused by the feds lowering interest rates to encourage spending. Mortgage refinance applications soared 79% compared with the week prior, while applications for home purchase loans increased 6%, according to the latest Mortgage Banker Association data.
Amid uncertainty, the precautions both locally and nationally are only for our benefit, so listen to those of authority and be a leader and let’s ride this one out together. Stay safe and healthy.