COVID-19 causes real estate market to balloon from out-of-state buyers

COVID-19 is changing the face of the north Big Horn County real estate market. 

Sarah Johnson, of Johnson Home and Land, said there has been a significant increase in homes sold in the past several months and that much of the increase is due to out-of-state buyers.

“I have certainly experienced out-of-state buyers moving here this year. It’s pronounced. It’s significant. I would absolutely say that it is part of the reason,” Johnson said. “Perhaps, it’s most of the reason.”

According to statistics from the Northwest Wyoming Board of Realtors Multiple Listings Service, in the previous 12 months, 65 residential properties have sold in north Big Horn County. It’s a notable increase from the 2018-2019 total between August of 2018 and August of 2019, when 40 residential houses  sold.

Johnson said those statistics do not capture every house sold, and it would be fair to tack a few more on, but the statistics do reliably capture trends taking place within the local market. 

According to an Aug. 5 article in the Basin Republican Rustler entitled “An upward trend in out-of-state interest of real estate,” south Big Horn County and Park County have also seen significant increases in out-of-state sales. 

Johnson said the increase has largely occurred since the start of the COVID-19 pandemic. The rural setting of north Big Horn County has become far more attractive.

“I don’t think the timing is a coincidence,” Johnson said. “As far as some of the buyers I have specifically talked to, some people tell them that the way we’re spread out makes it easier to function in a way that is distanced. These are people who to go about their daily activities in a safe way.”

Johnson said the change has happened too swiftly to cause an increase in price. In order to identify a trend in the market, a year’s worth of data is needed, and with the increase largely occurring in the last four months, it’s just too soon to tell. What it definitely means for local residents, though, is that houses are being sold at a quicker rate,  Johnson said.

“What it’s doing that I’ve seen is lowering the number of days on the market,” Johnson said. “I think if you’re a local buyer, it makes sense to be more prepared. You just don’t have the four to six months that you would have a few years ago.”

There’s another element making real estate purchases more attractive. According to Joseph Shumway, branch manager for Lovell’s Big Horn Federal Bank, due to the economic troubles caused by COVID-19, mortgage rates have plummeted in recent months.

Currently loans stand at 2 percent interest, and it’s a whole percentage point down from where interest rates stood last year, at just above 3 percent. 

What that means for those looking to purchase in real estate is thousands of dollars saved. 

But, on the downside, it also points to a larger picture that isn’t so rosy.

“It just shows a weak economy and damage to the overall health of our nation,” Shumway said. “It will take a while to rebuild and get that strength back.” 

It’s also difficult to determine if this trend is here to stay or just a blip caused by extraordinary times, Johnson said. 

“No one knows. This uptick could just end tomorrow, or it could be somewhat permanent,” Johnson said. 

BY Ryan Fitzmaurice