So what will the New Year look like for the Denver Real Estate Market? From everything I have heard and all the expert predictions, we are going to see a marked improvement over 2010. I have already seen business increase despite the "slow" time of year with people positioning themselves to make a move come January.
And personally being on the buying side, I can attest that the inventory is the lowest I have ever seen it. There are a lot of motivated buyers out there right now hoping to take advantage of these rates before they climb higherwho just can't find what they are looking for. So if you have been thinking of selling, factor in these 5 predictions for Real Estate in 2011 direct from the horses mouth, Freddie Mac and consider if now is the time to pull the trigger.
Freddie Mac analysts point to five features that they believe will likely characterize the 2011 housing and mortgage markets:
1. Low mortgage rates. With Fed observers expecting the central bank to keep the federal funds rate at its current target range of 0 percent to 0.25 percent for most (or all) of 2011, relatively low mortgage rates will be a feature of the 2011 mortgage market. Thirty-year fixed-rate loans are likely to remain below 5 percent throughout the year, and initial rates of 5/1 hybrid adjustable-rate mortgages will likely remain below 4 percent in 2011.
2. Prices have hit bottom. House prices are likely to begin a gradual, but sustained recovery in the second half of 2011.
3. Housing will remain affordable. With affordability high, many first-time buyers will be attracted to the housing market in the New Year, likely translating into more home sales in 2011 than in 2010.
4. Refinances will dwindle. Many eligible borrowers have already refinanced and the federal Making Home Affordable refinance program is expiring on June 30. While fixed-rate loans are likely to remain low, they will move up gradually, making it even less likely that refinances will be attractive to most home owners.
5. Delinquency rates will decline. Based on the last several business cycles, the share of loans that are 90 or more days delinquent or in foreclosure proceedings known as the "seriously delinquent rate" generally crests within a year of the start of the recovery in payroll employment, and this economic recovery appears to fit within that pattern. Payrolls began to rise last January, and by the spring the seriously delinquent rate had begun to fall.
Socials