Two big thoughts then we can dive in… REFINANCE NOW, BUY NOW 🙂 Rates are substantially down to the point that the majority of conventional mortgages originated in 2018 are now “eligible to be refinanced.”
It IS June, right? I’m looking at my phone weather predictor, and it’s telling me that we have NO days of 90 degrees coming up. This is good news for me; as a ginger, I struggle with the sun. It also seems to be a good metaphor for Denver home buyers heading into the summer buying season. The weather’s cooling off, and so is our market. Sort of.
When May ended, our housing market boasted 8,891 homes for sale. That’s the highest amount of inventory we’ve seen since May of 2013. It represents a nearly 27% increase in active inventory from April to May, and a 38% increase in inventory year-over-year. Holy moly, right? Sure. There are some interesting implications here, which I’ll get to.
While our market is absolutely cooling off, and buyers are feeling a little bit less pressure in their home searches, keep in mind that the average amount of active homes for sale in the Denver Metro Area from 1985-2018 is 16,007. “That’s a lot more than 8,891.” said, Math.
Another fun stat to consider is months of inventory (MOI), which tells us how long it would take for all 8,891 of those homes to sell, assuming no other homes came on the market. The answer? 1.87 months. 5-6 months of inventory is considered to be a buyer’s market.
So what does this mean? It means our market is growing, and it means buyers have a little more room to be choosy and negotiate some, relative to what we’ve experienced over the last couple of years. But that low MOI means that the homes are being purchased, and quickly. Tack on the fact that average and median sold prices continues to rise ($534K, and $450K respectively for single-family homes), means sellers still have control, especially if they are pricing their homes correctly from the get-go.
Buyers, your time is here, though. Inventory is increasing, and interest rates are falling; the average 30-year fixed rate was 3.99% at the end of May. Lots to dive into there, too. But I’ll save that for another day. Questions? Comments? Concerns? Want a deep dive into the FED and why rates are falling or what to do now with your home/home search? As always, don’t hesitate to reach out! I’m here to help.