Fall Bringing Opportunities for Denver Home Buyers

Median home prices are up 10 percent from last year, according to the Colorado Association of Realtors August Market Trends report. However, despite higher interest rates, multiple cash offers are a thing of the past, which is a great thing for potential buyers.

“It’s a great, great opportunity,” said CAR Spokesperson Matthew Leprino. It’s better than it’s been in three years for buyers. Yes, interest rates are higher, and prices are not as low as they used to be. However, people don’t have to pay above asking anymore and so it’s an opportunity for them to get in now. From a historic perspective, five, five and a quarter, it’s a really good interest rate.”

If this were 2019, the for-sale housing market in Colorado would be considered booming. Sellers are getting about 40% more than what they would have if they had sold their house three years ago. And even with the market cooling this year, the median price of a house sold in August was 10% higher than a year ago.

While homebuyers seem to have vanished, the median price of a house sold in August in Colorado or the Denver metro area was still higher than it was a year ago, by nearly 10%. But prospective buyers aren’t faced with the multiple-offer frenzy of last year and asking prices are finally coming down. Sellers are now getting 99% of their list price compared to 102% of what they were asking a year ago.

Higher interest rates did seem to affect potential buyers borrowing money to buy a home. Interest rates for a 30-year-fixed loan were 6.62% at the end of last week, up from 6.35% from a week earlier, according to Mortgage News Daily. The Fed has raised rates five times this year, or a total of three percentage points. That includes three consecutive months of three-quarter point increases, a historically high increase for one meeting. In early June, the same 30-year mortgage rate was 5.55%.

While we haven’t made our way to a buyer’s market just yet, the real estate climate in Denver is beginning to give buyers some options and breathing room. Are you ready to set down roots in the Denver Metro area? Contact Metrowest today – we’d love to show you around!