Today I want to give you an update on what the market has been doing over the past month, and give you some insight about what we can expect from the market to come.
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Today’s market is getting hot, hot, hot. Today, after Nick Webb gives us an update on the changes in the market over the last month, our favorite local lender Ben Yost will shed some light on what’s happening with interest rates.
Market Update—With Nick Webb (aka “Nickipedia”)
Inventory is up about 12% from last month, which is pretty typical for this time of year. However, the average days on market is down quite a bit—about 23%, actually. This means that homes are selling increasingly fast, which makes sense for how competitive our market is. Even a few of our luxury homes flew off the market last month. The average sold price is up almost 4%, compared to the year-over-year increase of 11.5%.
One negative trend that we have seen is the number of homes that are selling. This is mitigated by the fact that inventory has gone up, but we are selling 5% fewer homes month over month, and year over year, we’re selling 9% fewer.
So, what does all this mean? Since inventory has been a problem recently for buyers, the 12% increase in inventory is great news; there is a need for homes in every price range today. However, buyers today are very savvy, so if you are home is overpriced, they will know not to bid on it. If your home is priced appropriately, you will likely get offers fast.
In other market news, what is happening with rents? The rental market in Denver has been a big deal lately, with the influx of people moving here, so that’s no shock. However, rent is supposed to increase even more next year, going up 3.6%. It’s been said that if the Amazon headquarters move in, it could add an additional 2.3% to 5.9%.
We do not have a crystal ball to be able to tell you exactly where the market is heading, but if you are looking to get the most money for your home, now is a great time to sell. As inventory increases, there will be less demand for your home, which will reduce the competition that surrounds your listing, which, in turn, will reduce the amount you’ll get for it.
Though the average sold price has skyrocketed, causing frustration for buyers, it is still a great time to buy as well. The sooner you buy a home, the sooner you will be able to enjoy that increase in equity.
Furthermore, if you are not finding any listings you like online, you should check out our website—we have sneak peeks of homes in all price ranges coming onto the market. They have not been officially listed yet, but they will be soon.
“What’s Going On With Interest Rates?”—With Ben Yost
Unless you are living in a cave, you’ve probably heard that interest rates are going up. But what does that actually mean?
It does not mean that you will be unable to afford a house at all, but it does mean that the longer you wait to buy a home, the more expensive it will be. Now is a fantastic time to buy.
I was recently told by a client that they were so grateful for the education I gave them regarding the different financing programs available and about how we tailored their financing to their specific needs. Since they bought their home, their house has increased in value, and their interest rates are still low.
Rates won’t be getting lower any time soon; The Fed has announced that it plans to increase interest rates at least two more times this year. However, compared to historical averages, rates are pretty low.
I’m so thankful that Nick and Ben could join me today to help me update you on the current state of the market. If you have any questions about real estate, please don’t hesitate to reach out to us. We’d be glad to answer your questions and help you figure out the best path forward to your real estate goals.