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:
Ion Real Estate is a hand-picked team of highly respectable experienced Realtors coming together to work with you. Please contact us anytime with any questions. We look forward to serving your Colorado real estate needs. Our experience and dedicated professionalism ensures our clients have exceptional representation every step of the way. At a time where bigger isn't always better, Ion Real Estate has chosen to remain a smaller, highly focused team in order to provide a level of personal service, attention and consideration to our clients that you simply won't find elsewhere. Our decades of experience in the unique world of Denver real estate positions us advantageously to handle all of your real estate needs
"We first met Marc Blitstein online when we were exploring the possibility of relocating from Central Florida to Denver, CO. From the moment we made contact we found him to be friendly, professional and knowledgeable about the Denver real estate market. He was able to tell us about various areas and he even visited property we were interested in on our behalf. Marc returned emails, phone calls, answered all of our questions, inquires and provided assistance with our questions about Denver’s legal requirements. After we had chosen a property, he was extremely thorough and careful to explain all of the ins and outs of our purchase offer, how the electronic documents and filings would be handled, the process of a home inspection, and other miscellaneous details that are involved in buying real estate long distance. He had several very helpful suggestions for us as we worked our way through the process. Marc went above and beyond our expectations. We whole heartedly recommend Marc as a real estate agent for any relocation to Denver or its metro area."