2020 ‘a very good year’ for housing market
Although the coronavirus pandemic has hit businesses like restaurants and bars hard, the Pueblo real estate market has not suffered the same fate.
Last year “was a very good year,” said Dave Anderson, a real estate agent for ReMax Pueblo West who heads the Pueblo Association of Realtors.
Anderson attributes this to interest rates between 2.65% and 2.72%, that “suddenly a purchase has become affordable,” and the fact that many companies have realized that employees work from home is doable.
A lot of people move here from bigger cities “because they can work from home and it will stay that way because Pueblo is a nice place to live with a better climate and we have the reservoir,” he said.
The county of Pueblo recorded an 8.4% increase in properties sold in 2020 compared to 2019.
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According to the annual report of the Pueblo Association of Realtors, 3,082 homes were sold in 2020, compared to 2,842 in 2019. Sales in US dollars rose 22% to $ 745 million in 2020, compared to $ 610 million in the year 2019.
There is no doubt that the market collapsed at the start of the Colorado pandemic in March and April. “Then all hell broke loose,” said Anderson.
Vacant lots are also a hot commodity, as 439 lots were sold and contractors received 345 building permits in Pueblo West last year.
“There are currently 29 active lots for sale and it was in the 200s, so that’s just nothing,” said Anderson.
“The permits are way up – it’s the highest we’ve had in 15 years,” he said.
The only downside to the market is the fact that new offers or the stock of available properties cannot keep up with demand.
“We have very low inventory – that’s the reality of what’s going on,” he said. “For example, on December 28th, we had 23 properties for sale and 129 under contract.”
Median sales prices are $ 245,850 for single-family homes and $ 247,450 for townhouses or condos. However, based on demand, Anderson stated that there are no homes available in the $ 200,000-250,000 range and only a pair for $ 275,000.
“The rest is over $ 300,000. Another surprise of 2020 was five properties sold over $ 1 million, and none were sold over $ 1 million in 2019, “said Anderson.
Another dynamic in the market is that because of the low supply, some sellers receive multiple bids and bid wars sometimes ensue, Anderson said.
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The healthy real estate market benefits more than just brokers.
“A transaction can benefit 12 to 15 people when it’s complete. It’s not just brokers, they’re mortgage lenders, title companies, inspectors, and service people, ”said Anderson.
This year is likely to follow the same trends as interest rates are expected to stay low through 2021.
“It’s not just Pueblo County – it’s nationwide,” he said.
Chief reporter Tracy Harmon covers business and Fremont County news. She can be reached by email at [email protected] or on Twitter at twitter.com/tracywumps.