By Corcoran Perry & Co Managing Broker & President Jennifer Young
Let’s face it 2020 was beyond challenging, and for many relief was felt putting 2020 behind us. In searching for positive news, the 2020 real estate market has a full highlight reel of a record breaking recovery. The Denver Metro area ended the year with the most number of sales on record. Not only did Denver sales skyrocket, so did those in Fort Collins, Colorado Springs and our mountain towns. Colorado was not alone in breaking records, the nation as a whole did as well. No one could have predicted a county-wide seller’s market in the midst of an economically disruptive pandemic, social unrest and divisive political season, but the desire to secure a future and financial stability pushed home buyers and sellers to put their fears aside and take advantage of the opportunity at hand.
According to DMAR’s January 2020 Market Report, Buyer demand for detached single family homes pushed the average close price up 17% from a year ago and a 4.8% increase for attached homes. Low interest rates have been the rocket fuel for the increased activity and intense demand. Buyers took little to no winter break in their search as January showing numbers are off the charts and sellers are experiencing multiple offers once again. Demand continues to soar crushing the traditional selling, if there was ever a time to sell a home now would be that time. It is an understatement to say that inventory is low, to put it into perspective, you would need to drive past 544 homes before you found 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 low rates also pushed those who always dreamed of owning a second home into making it a reality. As many Americans reevaluate where they want to live with the new found freedom of remote work, many are flocking to their favorite getaways.
For those who chose to refinance their home loan in 2020, a sigh of relief was welcomed by reaping a yearly average saving of $2,300 in the form of a lower monthly payment. Mortgage institutions also created deferred payment plans for those struggling to make their mortgage payments. 2020’s big equity gains and loan forgiveness support should limit any short sale or foreclosure fall out in 2021. Interest rates hit record lows 14 times in 2020, and according to the January 14, 2021 Freddie Mac weekly Primary Mortgage Market Survey, the average 30-year fixed rate mortgage is 2.79% up slightly from the record low as the Treasury yields create pressure. The Feds have promised to keep rates low while our economy 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 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. Best wishes to all.