Metro Denver/Boulder- August 2022

Recent data from the National Association of REALTORS® reveals real estate sales are trending
downward over the last several months. The talk is about recession – is there or isn’t there? Even as sales numbers decline, the time a home spends on the market is still well under 30 days. Homes are selling FAST, not slow.

Fewer homes are available to choose from, plus concerns over rising mortgage interest rates are impacting the housing market in very interesting ways. In fact, the interest rate hike combined with rising home prices has led to less competition in the marketplace. That, along with a 2% increase in the last two months of inventory levels, which have been a plague to the marketplace for several years, has not extinguished the flame of desire to own a home. A slowing economy has not slowed the real estate market – 90% of homes are selling within 30 days or less.

“Due to rising interest rates, overall home sales will decline in the US this year,” NAR Chief Economist Lawrence Yun said. “Foreign buyers, however, are likely to step up purchases, as those making all-cash offers will be immune from changes in interest rates.”
Those cash buyers include a large number of our own citizens who are simply selling property with high equity returns and buying for cash at lower prices, most often in a different state. Americans are migrating substantially at this time.

Colorado has always been a favorite destination in the past. The sales statistics across the Front Range support the idea that we remain a destination state. Of the 7,361 homes that were available for sale this July, 4,279 sold and went under contract closed within an average of 13 Days on the Market. Sale prices reveal excellent equity gains still enjoyed by sellers, as the average sales price for July was $628,721 compared to last year’s average of $569,331.

For our local buyers who aren’t selling high elsewhere, allowing them to consider a cash purchase of their forever home, our best advice is to pay attention to your credit score. That score is high on the list of factors that determine the mortgage rate you’ll pay on a home loan, and how much your monthly mortgage payment will be. This can save you thousands of dollars over the life of your loan. Data shows a borrower with a credit score between 760 and 850 would pay nearly $300 a month less than a borrower with a score below 640 for the same house. Over the life of a 30-year fixed-rate loan, that adds up to just over $100,000. In other words, a lot of money.

Affordability is fluid right now, with many market changes following a trail of rapid ups and steep downs. Getting your credit score in the best possible condition, and enlisting me, your local Realtor puts you in an excellent position to make a great move toward owning your own home. I also have the knowledge and expertise to market your current home for sale at the best price and the fewest stresses on the way to a successful closing.