Buyers Rates Increasing

Potential Sellers with Rates Under 5% Holding Strong

The Metro Denver real estate market remained slower in July, with an 18.5% decrease in sales. The number of Active Listings for sale also saw a notable decline of 14% as compared to last July. This decrease in activity can be attributed to the reduced attractiveness of moving for homeowners who locked in mortgage rates around 3% in 2020-2022. A recent Zillow® survey showed that homeowners with mortgages over 5% are twice as likely to consider selling within the next three years as those with rates under 5%.

Average prices demonstrated a modest <1% increase in July as compared to July ‘22. This real estate market recovery follows a slight but consistent upward trajectory since the bottoming out of prices around September/October 2022. The rest of the year is expected to see prices fluctuate by about -2% to +2% year-over-year.

 

 

INFO FOR SELLERS

Acting Now May Be Less Stressful

The reduced number of Active Listings shows that moving is less attractive for many, especially those who locked in lower mortgage rates a few years ago. Forecasts suggest that sometime next year rates might decline, leading to a surge of buyers and a temporary spike in prices. However, holding off for that moment or trying to time the market may not be the wisest decision.

Although waiting could lead to better prices for Denver sellers, those trading up might find it advantageous to act now with less market stress. Plus, if you plan on buying elsewhere in Colorado, now may be an opportune time to trade up or down, with the option to refinance later if rates become more favorable. 

 

INFO FOR BUYERS

Seize the Moment: Why Buying Now Makes Sense

Current conditions present an interesting opportunity for potential homebuyers. Though mortgage rates have risen again recently, the market is not as competitive as it might become when rates drop, potentially as soon as next year based on economic forecasts. Waiting for a year might also lead to a temporary spike in home prices due to increased buyer demand, and increasing competition, potentially making now an ideal time to act.

Additionally, properties currently sell around their asking price, unlike last year where they were typically selling above. This provides a better negotiation environment for buyers. Prices have stabilized and you can potentially secure a property without extreme bidding wars. And remember, you can always refinance later if rates drop. 

Reach out to me today so we can strategize how to get the best value for your home, or how to get your foot in the door in the Denver real estate market!

(Info Source: DMAR (Denver Metro Association of Realtors), Lon Welsh).

 

*We use reasonable efforts to include accurate and up-to-date information. The real estate market changes often. We make no guarantees of future real estate performance and assume no liability for any errors of omission in the content.