Spring 2019 has put a bounce in the step of Denver home buyers! After years of a highly imbalanced housing market with record low inventory, the changing local real estate climate is a breath of fresh air. With increasing numbers of homes for sale, declining mortgage interest rates, and stabilizing Colorado home prices, buyers have a lot to be optimistic about and buying a home this spring could be a no-brainer. In fact, a recent survey by the National Association of Realtors showed a promising increase of buyers who think now is a good time to buy a home.
According to Jana Miller, Live Urban's Managing Broker, œThe Denver market is reflecting the national data. Our buyers are telling us they are excited about the prospects of more choices and more time to find the perfect fit. Our 'move-up buyers' are more optimistic about finding a great replacement property. The Denver market is reaching more balance and doing a good job of reacting to the change.
1. More homes on the market
In February 2019, there were 47% more homes on the market than the same time in 2018. The clear outcome of this inventory boost is more choice for buyers! With more to choose from, those looking to buy their first home, downsize their current home, or upgrade their living space aren't fighting over the same few properties anymore. This offers more breathing room and a less-frenzied buying climate.
2. Lower interest rates
After a steady climb of home loan interest rates (hovering around 5% at the end of 2018), the 30-year fixed rate average dipped to 4.28%. By reducing monthly payments, related solely to interest, this change improves the buying power of both Denverites and those shopping nationally. And, to make matters even more rosey for Denver home buyers, the Federal Reserve signaled that it wouldn't likely increase rates for the rest of the year.
3. More stable home prices
In addition to lower interest rates and more homes to choose from on the Denver market, the city is taking more of a tortoise approach to price increases than it has in recent memory. This slow but steady home value rise is in stark contrast to the breakneck appreciation rates of over 10% at some points over the last several years. With some distance from the bounding hare of steep home price increases, buyers feel more confident. In fact, home loan applications are up over 3% since this time last year.
Buying a home this spring
Spring of 2019 is shaping up to be a sunny time for Denver home buyers. With more homes to choose from, lower interest rates, and more stable home prices, Denver's future homeowners are buzzing with spring's breezy real estate changes.
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