Thank you Pamela Wandry for sharing this article.
August’s Denver Metro’s Real Estate Market Trends report reflects some good news for buyers. The inventory of homes increased 35% and 20% respectively for both single family homes and attached homes (condos and townhomes). This provides some much needed relief (however marginal it may be) for buyers – hopefully signaling a shift towards a more “normal’ housing market where buyers have a little more time to look at homes and before making an offer. The median home price of homes in the Denver Metro Area has increased year-over-year by nearly 17.5%, mainly due to the tight inventory levels, but Dr. Lawrence Yun, the Chief Economist of NARS, stated, “. . ., home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year.” This information leads to another highly asked question about the housing market, “Are we in a bubble?” Short answer – Highly Unlikely. The collapse of housing prices in the 2007-2008 timeframe was driven largely by payment shock and excess inventory – homeowners who had little equity threw in the towel when the payments on their ARM loans adjusted higher and they couldn’t afford to continue making payments. After a few years of strong appreciation and historically low mortgage rates, many homeowners have substantial equity and very low 30yr fixed rate mortgages – so the payments are not going anywhere and nobody is going to just throw away the extra equity – if a job loss or other event leads them to sell, they are much more likely to sell into a strong market and use the extra proceeds to cushion their transition.
If you want to take advantage of low interest rates or sell your home with equity, give me a call, text, or email me. I would love to help you.