The September housing report for metro Denver reflects good news for both homeowners and homebuyers. While closings are down 20%, home values remain very stable at a median home price of $585,000 in metro Denver, according to the Denver Metro Association of Realtors (DMAR).

The report also indicates there is only 10 weeks of inventory on the market.

Low inventory is what’s keeping home values up, which is a good thing, overall, for homeowners here. The average home is on the market just 15 days. Industry insiders agree anything listed from $200,000 to $500,000 – if priced right – it’s gone in a weekend.

And many real estate experts say even though interest rates are just under 9%, seller concessions often allow buyers to negotiate with sellers to buy down the interest.

They buy down the interest rates and they have a payment that’s much more attainable and manageable in their budget.

Kelly Fogel, a senior loan officer for HDS mortgage explained that a buy down is pretty standard right now and allows buyers to put money in an ‘escrow’ account of sorts, much like your taxes and insurance, and then use that as a subsidy to buy down the rate.

There are one year buy downs, two year buy downs and three year buy downs. What that means is, if you do a one year, the first year of your mortgage is 1% lower. A two year is 2% lower the first year and 1% lower the second year. And then there’s the three year, which starts at 3% lower.

For example, on a $500,000 loan, a seller concession of $24,000 over three years could buy your $3,665 monthly payment down to $2,681 the first year, $2,994 the second year and $3,323 the third year.

If you’re thinking of becoming a homeowner this year or next, there is definitely opportunity out there. Contact one of the experienced professionals at Metrowest and let’s go over your options!