June 13, 2024

A Look at the Denver Housing Market Since COVID-19

3 min read

COVID-19 has changed the world forever. Hopefully, things will start at least returning to some form of normalcy in the next few weeks or months, but no one really knows what’s going to happen just yet. The country is divided. There are so many pressing issues. And COVID-19 is still wreaking havoc on American people.

Unfortunately, just because all these bad things are happening doesn’t mean people can stop paying their bills, buying their houses, or selling their houses. It does, however, make it much more difficult. There is some silver lining, though.

“Record low mortgage rates and rising incomes drove an increase in housing affordability. Those factors should help to keep housing demand elevated into 2021, assisted by an increased demand for space,” said David Berson, Chief Economist and Senior Vice President of Nationwide. “Delinquency rates spiked as homeowners struggled with lost jobs and incomes, but government forbearance options for federally-backed mortgage loans have cut into foreclosures, softening the blow of the recession.”

Homeowners across the country have to be even more aware of taxes than ever before. The Oklahoma sales tax rate is currently 4.5%. Unfortunately, taxes are going to increase for the real estate market across Denver.

However, according to Norada Real Estate Investments, the Denver hosing sector has broken all kinds of records despite the ongoing global pandemic.

Real estate agents are working tirelessly across the country and across Denver to assist prospective homebuyers and current homeowners. Roughly 13% to 20% of the population moves each year, which means that companies have 13% to 20% new customers to attract each year via signage.

There was a record number of properties sold in August compared to the previous year, and July home sales recorded the highest number of sales in any given month. Now, the median listed price of a home is $489,000, increasing 7.5% year-over-year. Additionally, the median listing price per square foot is $308.

Undoubtedly, over the next few months and years, the construction industry will continue to design and build new homes in Denver and across the country. In 2017, approximately 8.4 million people were employed within the construction industry in the United States.

Although immediately before the pandemic struck the Denver housing market was looking even better than ever, but an unprecedented 761 homeowners who were in the process of selling their Denver properties backed out in March just as the pandemic was hitting the United States.

Shaun Martin, a founding member and owner of WatsonBuys, a real estate investment business in Denver, gave us some excellent insight into how the pandemic has affected the home buying and selling process:

“The initial challenges we faced were educating people that they could still sell their house safely and for a good price. In the early days, there was a lot of resistance from sellers purely based on their fear of COVID-19. We took the approach of providing the best facts currently available. To ensure we were providing facts we were sure to vet the information to ensure it was from a credible source.  Initially, this did cost us significant resources as we had never been a “fact-checker” before. However, following the initial period, the process became easier. Providing this information allowed us to position ourselves as a credible company to work with. It showed us to be non-partial. This built trust with our clients and allowed us again to build a good book of business.”

He went on to say, “From the past 9 months, the lesson we learned and now advice I give for any business is to spend time creating a plan. This plan should involve who you are targeting, what their pain points are, and how you can adjust in the current environment to lesson these. I also have learned that providing real information and taking the time to explain it provides a ton of value to people who are unsure of where to turn. This allows trust to be built, relationships to form, and good business to grow.” 

Again, this disease has changed everyone and everything. But we can and we will get through it.

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