We’ve been getting lots of questions lately about the national real estate market cool-down. People are wondering how it will impact Denver, if their house is worth more or less now than it was before, and what will happen in the coming years. Read on for some of our latest thoughts!
By David Schlichter
While home prices are declining on a month-over-month basis, they are still up year over year, and economists are not forecasting a significant year-over-year drop in housing prices in the near term due to the national housing shortage. Having said that, with a global pandemic ongoing, the government working to counteract inflation, the stock market well off its all-time highs, and a major war underway in Europe, it is important to acknowledge that anything could happen.
So where does that leave us? Whereas the start of the year was the hottest real estate market in Denver’s history, now represents a real opportunity for buyers who finally have more homes to choose from and don’t have to compete in a bidding war for nearly every property. It also is an opportunity for sellers who can still capture much of the tremendous equity gains they have earned over the last decade while having an easier time finding a replacement home.
And if you're concerned about the higher interest rates, our advice is to "date the rate, and marry the home." What do we mean by that? Rates go up and they go down. If they go up, buying now means you got a better rate. If rates go down, you likely can refinance. Focus less on your interest rate and more on finding a home you love!
If you have a real estate need, we look forward to helping you skillfully navigate the complexities of this market to accomplish your important goals. Contact us today to let us know what we can do to help you.