Boulder Real Estate Could Be Permanently Impacted By Covid-19
The Washington Post this week writes some unsettling real estate coronavirus news. That our Boulder realestate market may be enduringly impacted by Coronavirus. Even after the pandemic subsides.
That could have far reaching consequences.
Coronavirus Mortgage Relief
Forbearance. It’s the hot government phrase that has Boulder house owners hoping they can get some relief on mortgage payments during this crisis. Ian Bennett with Elevations Credit Union warns there is a disconnect between consumer expectations and on the ground policy.
For instance, skipping payments while not necessarily negative on your credit report is all the same reported. That in turn can make it difficult to complete a refinance. Home mortgage refi’s are up around Boulder County. Many owners are doing cash out’s to get needed liquidity in the market.
Rental Defaults Increase
The WP article goes on to point out, commercial tenants and residential renters alike are not paying their rents. In some cases, this is protected by local political policies preventing evictions.
Nationally, the number of renters skipping a payment is on the rise. With national unemployment skyrocketing, twelve percent of renters slipped on rent payments. My own personal experience has been three out of four renters paid. The fourth failed to pay and is now moving out of their own volition.
Meanwhile, landlords can find their hands tied by legislative rules. Evictions are on hold in many municipalities, although tenants remain liable for the rent says Frascona, Joiner, Goodman & Greenstein (FJGG).
While a significant portion of the Boulder Colorado population is in great jobs (STEM, Labs, IT, Tech), we also have a massive number of restaurant, coffee shop, hair stylists and such employees. Boulder CO real estate will be impacted by Covid-19.
Jumbo Mortgage Lending Changes
One route in which Boulder home sales could be impacted is mortgages. Last month, Wells Fargo stopped offering jumbo mortgage financing. Now, Chase, another large national lender is requiring larger down payments and higher credit scores.
These changes will narrow the number of consumers qualifying for home purchases. And in turn, it could impact even strong Sellers Markets like ours in Colorado. By contrast, ninety days ago a credit score of 625 was sufficient to buy a home.
Colorado Realtors Disclose Disclose Disclose
Colorado real estate Denver to Boulder is being impacted with a world of disclosures.
For instance, all the new rules around showing homes. Making headlines for real estate Coronavirus news last month was homes going under contract before showings. That was to accommodate a State of Colorado rules change to protect consumers.
Now, as Shelter-in-Place rules expire, am still hearing not all home buyers are comfortable with in person showings.
I’m seeing a ton of new disclosures to alert home buyers to the risks. We are taking our temperatures, alerting clients to issues before showings and in some instances, writing offers before we even set a showing to accommodate Shelter-in-place restrictions.
And for now, the hot Sellers market continues to impact Boulder Colorado real estate with stories of buyers bidding up home sales.
3D Matterport Home Tours Are The New Normal
One of the ways I’ve set my marketing apart from the competition is better photography and top of the line videos. Now, this is becoming the new normal.
Open houses with person to person contact are out according to the new Safer At Home article according to Zac Grey, an attorney with FJGG. Replacing the weekend fave is the virtual Facebook open house. Its not quite the same thing. Then again, if it takes off, it could be a change that outlives all the negative real estate Coronavirus news.
Showing Houses In The Age Of Coronavirus
At a local, state and national level, Realtors are making changes to the way we show homes and interact with home buyers. Imagine, showing a home inside a multi-story building with an elevator access. How do we maintain six feet distance?
What about home buyers with small children? Clearly no one is bringing the kids to a Boulder happy hour, but what about to a home showing? The National Association of Realtors has a strong Pivot In Place program to help agents like me keep providing excellent service to clients like you. Safely!
Realtor Bob Gordon: Selling Homes In Boulder County AND
From Erie CO homes for sale in the north to Arvada Colorado houses for sale in the south and all points in between, I’m here to help you find your next home! Talk Soon. ~ Bob