FRISCO — There’s little question the pandemic had a unfavorable impact on Summit County’s actual property market, however a robust luxurious market seems to be on the horizon.
For March and most of April, state public well being orders prohibited showings and open homes. Financial uncertainty amongst consumers and sellers led to anxiousness amongst Realtors, who didn’t know the way lengthy the state of affairs would final. Consequently, Realtors reported grim numbers in April and Might.
The market skilled a 59% drop in gross quantity in April 2020 in contrast with April 2019. In April of final yr, there have been 166 complete transactions within the county in contrast with the 92 transactions in April 2020, in keeping with Land Title Guarantee Co.’s April market report.
In keeping with numbers from Summit Realtors, there have been simply 69 complete actual property gross sales in Might, a dismal quantity in comparison with the 178 gross sales in the identical month of 2019.
Brooke Roberts, director of gross sales and advertising at Land Title, mentioned she thought of April to be the “useless month.”
“Every part that closed in April was from March,” she mentioned.
March can be a greater indication of luxurious gross sales efficiency up to now yr, Roberts mentioned. Total, the gross quantity dropped 2% in March 2020 in comparison with March 2019.
As for luxurious gross sales, 21 houses priced above $1 million had been bought in March 2019 whereas 29 houses in the identical worth vary had been bought in March 2020.
Coming off April’s intense drop in gross sales, Realtors had been fearful in regards to the future. Nevertheless, Gov. Jared Polis signed the safer-at-home govt order Might 27, permitting showings and, afterward, restricted open homes. Since then, the market appears to have begun to bounce again.
The outcomes are “stunning,” Roberts mentioned. In mid-to-late June, she and different Realtors noticed a big uptick in gross sales, particularly for luxurious houses.
Might numbers are already promising for the actual property trade. Thirty % of complete gross sales in Might 2020 had been at or above $1 million, Summit Realtors President Dana Cottrell wrote in an e-mail. In Might 2019, solely 19% of complete transactions had been at or above $1 million.
There’s numerous causes for the success in gross sales, Roberts mentioned. Primarily, individuals who can afford luxurious houses are itching to get out of the cities the place avoiding the virus is troublesome.
“The posh people evidently nonetheless have the cash,” Roberts mentioned. “They didn’t lose their jobs, or they didn’t take a pay lower, or they need to make investments their cash in actual property as an alternative of the inventory market.”
Locations like Summit County have all the time offered an escape for professionals. Nevertheless, this yr is totally different. An increasing number of employers are embracing the work-from-home way of life, and professionals really feel they’ll do their jobs from wherever.
“I feel they’re focussing on the standard of life,” Roberts mentioned. “They need to be in a ‘safer’ place the place they’ve actions which might be free, they usually’re capable of do with their households.”
If the development in individuals eager to reside removed from the place they work continues, the market will strengthen, Cottrell mentioned.