Friday Update November 20, 2020
A lot of you guys legit freaked out today about sitting in line for multiple hours to get a shitty burger than a teenager likely spit in. In March the world ran out of toilet paper. And that all somehow factors into the housing market because everyone needs a place to rush to after eating in and out in their car.
415 Existing single family homes on the market today, kind of flat over last week and nowhere close to a balanced market.
Interest rates took a small bump up off their record lows but they are still insanely low. Hence prices are not.
Month to date for November we have 673 closed sales with a median price of $385,000. Usually median prices take a small dip into winter and then recover in the spring but our market has been anything but usual the last few years.
More jobs coming here in the short run guys. Space Force, In and Out Burger, Amazon, a bunch of companies I'm unaware of. That means our 740,000 people will likely be more before we know it and everyone needs a place to live. You probably see all the apartment complexes being built like off Woodmen and all over the place off Powers. Those units are being put up with a market rent already in mind, and it won't be a little bit!
I've got a client that just bought an investment house in central COS. 3 bedrooms, 2 baths, 1 car in really nicce shape but nothing HGTV worthy. Just a nicely kept rental home he bought for just under 300k.
He put it on the rental market for 1800 dollars a month and had 30 hits in 60 minutes. That's what the rental market is like.
The rents act as an anchor for sales pricing as they dictate what investors will pay for homes.
There will be some pressure on the housing market from the fallout of Covid. I'm talking about when the dust settles, the vaccines is out, people stop dying at crazy numbers there will be a reckoning of sorts at that point. However I think that whatever fallout we get from that will not be enough to fully shift the market in the buyers' favor, although I think it will help keep prices from continuing to run at a double digit annual pace. What I'm saying is hopefully we have a bit of a foreclosure issue to help soften the pace of this price growth.
If you want to buy a cheap house you should consider moving to a city that's dying, not a thriving one.
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