Regardless of the Covid 19 pandemic, there has been an increasing success in the real estate sector in Mesa County as the city has experienced more house listings. The Bray Report in November 2020 stated that on average, houses were available in the market for a maximum of fifty-six days.
Mesa County had just 351 house listings, which was about 49% lower than the number in November 2019. Amazingly, homes were sold at almost the same speed in 2020 too.
According to an associate broker in Bray Real Estate, Ron Sechrist, the 2021 residential inventory may likely be as low as 2020. He also stated that it has been his lowest inventory in his 42 years as a realtor.
In a perfect real estate market, demand should be equal to supply. But, when it is lopsided, it is much acceptable to have fewer listed homes than more listed homes. In 2019, demand was greater than supply leading to more issuing of building permits. It built up to 9% in November.
It takes time to build quality homes. For this reason, Sechrist does not think supply will meet demand this year till 2022. Available houses are also expensive as the mean house price is around $287,000. This is a thirteen percent increase. And out of 3,665 sold houses, 591 had an asking price of $200,000.
Low-interest loans can reduce the high house price. Presently, fifteen years loan has 2.125% interest rate, while thirty years loan has 2.625% interest rate.
Although the homes sold are quite bigger and in new environments, Sechrist estimated a 40 percent increase in the price of the big house sold in 2020 than in 2019. According to his statement, they were previously reducing houses. But now, the reverse is the case as individuals are unsure of the time duration of the lockdown- so they can demand a backyard, office, etc.
Also, the home buyers are quite new to Grand Valley. Some are from underdeveloped cities, while others are retired. During the rise of COVID, many businesses are going by remote-jobs, letting them check their employees’ quality of life.
According to Sechrist, this pattern started in 2018, but the COVID-19 virus just made it more prominent. This is not great for Grand Valley residents as new residents tend to purchase their desired house, leading them to move to RVs or in with their parents while house hunting.