Since we have already had our first snow and the leaves are rapidly falling from the trees, I think it is fair to say that winter is right around the corner so I thought it would be helpful to look at the Denver Real Estate Market as we head into the heart of winter.
Historically, Real Estate in Denver slows down in the winter. While the number of sales are lower, my busiest months are typically December and January so I always encourage my clients to ignore the whole, winter is a bad time to buy or sale idea because people who are moving this time of year have to sell and aren't just testing the market.
2013 has been a year like we have never seen for Denver Real Estate. And while the market isn't as wild and crazy as it was this spring, it is still very, very strong and I don't see any reason why it should slow down during the colder months.
The biggest driver of the market moving forward will be interest rates. Rates have come back down into the low 4% range from as high as 5% even last month. The Fed has made every indication that they will keep the rates around the 4.25% mark through next spring so buyers who have a desire to buy should definitely take advantage now because last month we thought the low 4's were gone for good.
We are starting to see banks ease their requirements for lending and require less money down. Borrowers with lower FICO scores will be surprised what they can qualify for and that will put even more buyers into the market.
Sellers are starting to get the message about how good of time it is to sell right now so we are starting to see more inventory and better choices for buyers. That being said, we could definitely use more inventory and it is as good of time to sell as any.
Home sales in September were at the third highest level since 2009 when the homebuyer tax credit expired and buyers were rushing to take advantage of the credit so the market is definitely still booming. The biggest objection I've heard from buyers recently is they don't know what the rates are going to do and are waiting for them to come back down. Now that we have as solid an indication as we are going to get as to what rates are going to do, I expect buyers to get back out in force and keep the market going through the winter until next spring.
If you are a buyer, get out there, find a home, and lock in these awesome rates. If you are a seller, now is as good of time as any to sell with all these buyers coming on the market. I feel like I've been saying this all year but I've already encountered lots of people who regret not moving earlier so I can't encourage highly enough making the move now before you are left regretting hesitating next year.
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