“How could the real estate market be so strong in the middle of a pandemic?”
That is a fair question and one we hear frequently from our clients.
There are several reasons for this but two stand out.
- Interest rates
Employment has bounced back much quicker than most people expected. When COVID first showed up, the expectation was that many industries would be hit hard for a prolonged period of time.
The reality is that only a few industries were severely impacted by COVID and the rest were able to get back to a near-normal level of business relatively fast.
Additionally, what we find along the Front Range is that our ‘job bounce’ is even better than the national average.
Here are the numbers…
The COVID-peak unemployment rate for the Front Range looked like this:
- Larimer County = 11.1%
- Weld County = 10.1%
- Metro Denver = 12.3%
Today it looks like this:
- Larimer County = 5.2%
- Weld County = 5.2%
- Metro Denver = 6.4%
Nationally, unemployment peaked at 14.8% and now stands at 6.7%.
So, a main reason why values are soaring right now is because jobs have bounced back, and that bounce combined with near all time low interest rates has increased demand while supply remains at a record low!