Front Range Real Estate Market Update: Opportunities for Home Buyers, Sellers and Home Owners The Front Range region, spanning from Colorado Springs to Fort Collins, has been a hot spot for real estate activity in the last few years due to the Pandemic. Beyond surging home prices, it has fueled a different type of real estate issue, that is, rate-locked homeowners. If you’re a potential buyer, seller, or homeowner in this region, this is the right time to take a look at the latest trends, data, and insights on the Front Range real estate market. In this blog post, we’ll go over the current state of the market, the factors that are driving it, and what it means for you.
Housing Economics: As of May 2023, has seen supply for Detached Homes increase to 32% while the Attached market (Townhome and Condos) is up a whopping 83%; this in relation to closed sales, the Detached market is down 30%, and Attached is down 26%. Regarding new listings, the number is bad for buyers looking for choices and more negotiation power as it’s down 26% for Detached and 19% for Attached. In short, prices have seemed to have plateaued IF new listing count continues its downward trend, but if new supply continues to grow and demand continues its trend, look for prices to fall.
The Home Prices: When it comes to home prices, the Front Range market has been setting new records year over year, but finally, this number is cooling. According to the latest report by the Denver Metro Association of Realtors, the median detached home price in the Denver metro area is $659,945, down 1.5%, while the attached market is at 486,096 which is down 2.2% from May 2022. The average days on the market is currently at 21 days for detached and 24 days for attached. These are respectable numbers but more than double last year’s days.
The Mortgage Rates: One of the reasons why the housing market is softer is the result of today’s mortgage rates coupled with appreciation over the last 2 years. As of June 2022, the average 30-year fixed mortgage rate is around 7%, which is down .5% from its 52-week high. Look for this number (30- year fixed mortgage rate) to be the guiding factor for where home prices go in the future. That is, if rates go down, as many forecast to occur, this will then raise demand and maybe prices as well.
The New Construction: To address the housing shortage, developers and builders ramp up their activity across the Front Range. Some of the new construction projects include multi-family apartments, townhomes, single-family homes, and mixed-use projects. These projects are not only adding to the housing inventory but also creating new jobs, boosting the economy, and enhancing the quality of life. However, the new construction comes with its own challenges, such as the rising costs of materials, labor, and land, as well as the zoning and regulatory issues.
The Tips for Buyers, Sellers, and Homeowners: Whether you’re a buyer, seller or homeowner, the Front Range real estate market presents both opportunities and risks. Here are some tips to keep in mind:
Buyers: Be prepared to act fast, negotiate fiercely, and have your financing in order even in this cooling market the best homes still sell quickly. Work with an experienced agent who knows the local market and can help you navigate the bidding process.
Sellers: Do your homework on pricing, staging, and marketing. Hire a reputable agent who can showcase your home in the best light and attract qualified buyers. Be realistic about your expectations and be ready to make some compromises.
Homeowners: Many are rate locked and are choosing to stay put. If that is the case then take advantage of your current equity and open or revalue your lines of credit (HELOCs) as you are more than likely to be sitting on quite of bit of opportunity and access to this can be of value. Also during this time consider upgrading your home with energy-efficient features, home office space, or outdoor amenities. Stay informed about the market trends and plan ahead for your future needs or simply call me to find out where to best put your time and money. Conclusion: The Front Range real estate market is a complex and dynamic landscape that requires careful analysis and strategic planning. While the market presents some challenges, it also offers many opportunities for those who are willing to seize them. Whether you’re looking to buy, sell or stay put, it’s important to stay informed, educated, and proactive. By working with a trusted advisor, such as a reputable real estate agent or lender, you can make the most of the current market conditions and achieve your goals. Happy house hunting!