Money is cheap!
As we enter the new decade, interest rates are REALLY low and I expect they will be for the next few months. Your buying power today is as high as you can get. Mortgage rates fell three basis points to 3.90 percent, a helpful gift for homebuyers this holiday season, according to Bankrate’s weekly survey of large lenders.
The lower interest rates coupled with recent leveling out of home prices give buyers an advantage right now. There has been a slight spike in affordability allowing buyers more purchasing power than last year at this time.
Lots of Buyers in the market!
December was the busiest December, Steck Real Estate has seen in years. Buyers and Sellers didn’t seem to take a holiday this year at Steck Real Estate. More recently, inventory has increased, and that’s resulted in increased price reductions and concessions, particularly on more expensive properties. However, market trends show the Denver Real Estate market will likely heat up for sellers this upcoming spring, but possibly even earlier…
January could be the New April.
According to a telling article from CNBC Real Estate, Jan. 2, 2020, “Competition for housing is so high, the spring market is starting now.” Historical data shows an increase in houses listed on the market in January 2019 as compared to 2015-2018. This year is the year to start early to beat the competition.
Price is the name of the game.
It is important to price your home accurately. Buyers still aren’t making offers less than the asking price. Many Buyers are passing on a price that is above their price range rather than making an offer at a price that is out of their reach. It is important that your home isn’t overpriced. You only get one chance to make a first impression, so make sure the price tag has the right price.
Speaking of home prices, another important factor that comes to mind: appreciation. According to Mashvisor’s Denver’s 2020 Housing Market Outlook, “since the beginning of 2000, Denver’s real estate values have increased by 126 percent which exceeds both the state and national averages.” For those investors looking for long-term investments, the buy and hold strategy is a great way to make money over time and something to consider this spring.