Since November 2022, the 30-year fixed mortgage rate has remained consistently between 6 and 7 percent. However, recent developments in the economy and housing market warrant attention. This article provides quick tips for both home buyers and sellers in light of the current situation.
For Home Buyers:
Historically Low Inventory: Excluding pandemic-affected years, April 2023 saw the lowest inventory levels since 2008. This scarcity of available homes presents a challenge for buyers but we are starting to see more inventory pop in the Denver market.
Popular neighborhoods and well-priced, move-in-ready homes continue to attract strong competition. Buyers need to be prepared for bidding wars and act swiftly if you want move in ready located in trendy neighborhoods.
Predictable Interest Rates: While interest rates may not dip below 6 percent in the foreseeable future, they are expected to remain relatively stable in the coming months. This stability offers buyers more predictability when planning their purchase
Predictable Interest Rates: While interest rates may not dip below 6 percent in the foreseeable future, they are expected to remain relatively stable in the coming months. This stability offers buyers more predictability when planning their purchase.
For Home Sellers:
Decline in Average Home Prices: Homes are selling for 5.6 percent less than they were at this time last year, with the average home selling for $682,061 in April 2023. Sellers should be mindful of this pricing trend.
Increased Time on Market: Homes are taking longer to sell, with an average of 29 days compared to just 8 days a year ago. Sellers should be prepared for a potentially longer selling process.
Advantage of Low Inventory: Low inventory levels significantly improve the odds for sellers. While new listings have decreased year-over-year, active listings have increased by 44.19 percent. This means less competition for sellers with homes already on the market.
Capitalize on Early Impressions: The first few weeks on the market are crucial for making a strong impression on potential buyers and securing a quick sale. Sellers should focus on presenting their homes in the best possible light during this critical period.
The housing market is experiencing consistent interest rates between 6 and 7 percent. For buyers, this means they can plan their purchase with more predictability, but they must be prepared to face tough competition in a low-inventory environment. Sellers should be mindful of declining prices but can leverage the advantage of low inventory and aim to make a strong impression in the initial weeks of listing their homes. By understanding the market dynamics, both buyers and sellers can navigate the current landscape more effectively and achieve their desired outcomes.
To watch a quick video of direct market stats from the source of Recolorado.com go https://youtu.be/IvGA2PqMMSE