It's hard to believe that with the great housing re-bound we have been experiencing this year, that inventories in Denver are still extremely low. In an article by the Denver Post, it states that inventories have fallen by almost one-third across all three price tiers during this past year, according to a study released by Zillow.http://www.denverpost.com/breakingnews/ci_21749951/denver-housing-inventory-falls-by-one-third-past There are some good points and bad points that come along with this news. The good point is that home values will invariable rise as demand out paces supply. The bad news is that poeple looking to buy will have less options available and may take a little longer to find the right home.
However, it is still a great time to buy, even though inventories may be low. Interest rates are at all time lows. This means that you can afford more house for your money. When you can borrow at such low rates, the same payment at 4.25% last year, could afford you $25,000-$30,000 more in mortgage this year at 3.5%. So even with the lower inventories, your price range may have been expanded upward by $25,000-$30,000 because of the lower interest rates. When a buyer was looking in the $275,000-$300,000 range, they can now look in the $300,000-$330,000, which could open up a whole new range of inventory. This assumes that the buyer can still qualify for the same payment as they did last year.
For those who are looking to buy, it is still a great time with interest rates so low and rental rates rising. For those looking to sell, inventory is low so you have a good chance of selling quickly and for a good price.
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