In May, there were 8,789 new listings, up 16.97 and 38.12 percent from the previous month and year, respectively. At month’s end, 6,470 homes went under contract, up 5.65 and 10.5 percent from
Good Time To Sell
If you've been thinking of selling your home, you'll want to keep reading. This is a good time. Let me share some Denver market background:
1. Mortgage rates have hit a 7-year high.
Several weeks ago, the 30-year fixed mortgage rate broke through the 4.6%-mark, the highest level since May 2011. This is part of an ongoing upward trend in mortgage rates, which started over a year ago. In spite of the rate increase, mortgage applications spiked in September. This is a signal that buyers expect rates to go up even more in the near future—something that's very well possible given current conditions.
2. Affordability is dropping, and demand might soon follow.
For the past several years, home prices have increased at twice the speed of inflation. For a while, this didn't have too much of an effect on the market, because there was so much demand. However, the continued price growth and the mortgage rate hikes might finally be getting to buyers. Affordability is suffering. This seems to be causing demand to suffer as well.
3. More reduced prices. The combination of sustained high prices, increasing mortgage rates, and a drop in demand is finally starting to have an impact on the real estate market. While there are still no major signs of a real estate slowdown yet, there are some worrying indicators. Crucially, more sellers are now reducing prices. More than a quarter of homes listed as of September 16 had a price drop.
What does this all mean for you?
In short, if you've been thinking of selling your home, then the time to act is now. In spite of the easing of demand, there are still many hungry buyers on the market and prices remain near all-time highs.
However, because of the reasons above, this situation might not hold very long. Demand might slack off even more, and then many more homeowners might decide to enter the market, driving down prices and really ushering in a buyer's market.
If you are considering selling, you can get started now by getting an idea of what your home is worth in the current market. Simply try out this home value calculator:
or Call me for a home valuation Patricia 303-549-5573
As a real estate broker and real estate investor, Patricia Belaire understands the importance of really listening to the wants and needs of home sellers and home buyers and providing exceptional perso....
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