Falling for this New Denver Market
Ok, I’m just going to say it. This market is weird. Weird in great ways and some not-so-great ways.
Let’s talk about the elephant in the room…interest rates. OMG, have they been ALL over the place. With the Fed raising them. Saying they won’t, then raising them again. Then lowering them, then raising them once more. It’s like a bad ride you want to get off, but you can’t.
Here is the good news. High rates mean fewer buyers in the market. Why is this a good thing? Because it means less competition for that dream property, you’ve been eying. The solution to those high rates is utilizing a 2/1 buydown. This temporarily decreases the rate by 2% for the first year, then 1% for the second year, and back to the locked amount in the 3rd year. With the hopes that by the time year 3 comes, you will have already refinanced when rates finally normalize. And the seller pays for the 2/1 buydown. So yes, rates are BRUTAL, but the opportunity lies in lower home prices, seller concessions, and not having to give up your kidney to get a home. The second those rates drop, guess what happens?! All the buyers come back into the market.
Now, let’s talk inventory. Denver is slowly getting more and more inventory, which is so exciting! Yes, selling your home currently looks so different from 2 years ago. It can take 5+ months sometimes to sell your home. And that’s ok! You have to make sure the home shines, like really shines. With more options for buyers, they are being extra picky. If you’ve got those projects you’ve been waiting to do, NOW IS THE TIME. And yes, letting go of that low interest rate can feel like a stab to the heart. Looking at all the equity you’ve built in your home over the past years will surely make you smile.
And while it’s not always the right time to buy or sell, now is not the wrong time to do either!
Questions? Reach out!