Like every industry, the real estate market was impacted by the pandemic. At first, everything stopped. Open houses were closed. Home showings were canceled. When people started working at home, cooking, eating, playing, exercising, and even teaching at home, they quickly realized they needed additional space. When things opened back up, people exploded onto a hot real estate market fueled by low mortgage rates.
With beautiful mountain living on the side of Colorado’s deepest and largest natural lake, Grand Lake offers the serene living people desire. Gorgeous views of mountains and water surround the area. Grand Lake is the “Western Gateway” to the Rocky Mountain National Park.
How can a housing crisis and real estate boom happen at the same time? COVID-19 is just one contributor to the unique real estate market we are in. We have the breakdown for you here.
Grand Lake declared a workforce housing crisis
The scarcity of employees is causing problems for business owners and consumers through reduced services, products, sales, and revenue. While the worker shortage is currently a nationwide issue, Grand Lake is especially impacted by it because only 26% of the residences are occupied all twelve months of the year. The lack of inventory in the lower price ranges is one of the main contributing factors to the worker shortage. On July 12, 2021, Grand Lake declared a workforce housing crisis. The idea behind it was to attain state and federal funds to offset the housing shortage and create more affordable housing, thereby growing the available workforce for the area.
The rise of single-family home sales in Grand Lake
The shift to working from home meant people could live farther away from the office. Many sought out more affordable living or homes with more space. With people exercising and working at home, and the need for entertainment and outdoor spaces, they required bigger living spaces. This led to a nationwide rise in renovating and upgrading into larger homes. Home sales across the country are up 30%-50%, and home sale prices are at record-breaking highs.
The housing shortage in Grand Lake
The driving force behind the record highs is the housing shortage. Since the early 2000s, home construction has primarily been focused on homes in the upper price ranges. Fewer homes in the lower and middle prices were built. This, combined with the increased demand for housing, created a housing shortage and rising prices. The backlog of manufacturing, materials, and supplies from quarantine shutdowns, forest fires, and other factors will hamper the ability of new construction to meet current demand. The cost of lumber alone is more than 250% higher than it was last year, which increased the cost of new homes by $35,000. The three months that everything was shut down resulted in a production loss of 70,000 homes. Grand Lakes will have a limited supply of available housing for the foreseeable future.
The good news for Grand Lake property owners
The good news? Your property is now worth more than it was a couple of years ago. In some areas, home values have increased more than $100,000 from five years ago. Financing terms are also expected to stay low for the foreseeable future. Many are taking advantage of the low rates and increased equity in their current home to purchase investment properties and second homes. Even though inventory is tight, new Grand Lake, Colorado, homes for sale are listed regularly. With the assistance of an experienced local realtor, you can find an excellent investment property, a second home, or a primary home that fits your needs and your budget. If you have been wanting to upgrade your home, this is the time to make the move.
A seller’s market in Grand Lake, Colorado
It has been a long time since we have been in a nationwide seller’s market, but we are experiencing a high demand for properties in Grand Lake and across the country. If you are hoping to sell your Grand Lake, Colorado property, this is good news for you. Homebuyers are competing for the available homes for sale, and sometimes this leads to bidding wars that drive the price of the home above the listing price. If you are looking to purchase a home, you may be wondering if you should wait. The mortgage rates may go up, but they will likely stay below pre-pandemic levels for some time. The inventory shortage, however, is going to linger. The longer you wait, the harder it may be to find the property you want. At the moment, Grand Lake has a slight seller’s advantage, which is advantageous to anyone hoping to up- or down-size.
The professionals to help
Whether you are buying or selling, talking with your lender and Grand Lake real estate agent early can help you prepare for the process and feel confident with your decision should you decide to move forward. Working with a realtor who is experienced with negotiating in a seller’s market will make a notable difference for you. Finding yourself in a bidding war can be stressful, but a knowledgeable agent can guide you through the process and make sure you attain your goals. Local agents familiar with the area have extensive networks with their peers. They have proven results and are respected by their colleagues. If you are looking for an investment property, choose a realtor experienced with investment property. They will be able to assist you in preparing for the unique maintenance issues and other situations that arise with investment properties. A skilled agent is one you can trust.
Brenda Freeman has been helping homeowners and investors locate the best Grand Lake real estate for their needs for two decades. She is a skilled negotiator and is happy to assist you.
