If you have questions about interest rates, inventory, and changes in home prices, our latest Denver Housing Market Report can provide you with all the information you need to make informed decisions. Please contact us today for assistance.
Interest Rates Consistently Stay Between 6-7 Percent
Since November 2022, the 30-year fixed mortgage rate has remained consistently between 6 and 7%. Although it is not as low as 3%, this stability is beneficial for buyers. It will require significant changes to break out of this pattern, and buyers are gradually accepting this reality. As a result, consumer sentiment is improving.
The Fed met today to raise rates by a quarter of a percentage point. Many predict this will be the last rate hike the policymakers enact for a while.
While inflation has seen a bit of a slowdown, three recent bank failures and unsettled debt limit talks have launched wider concerns about the economy.
What does this mean for buyers? It means interest rates could be more predictable in the days and months to come, even if they do not dip below 6 percent for some time.
Tips for Homebuyers this Month
According to the Denver Metro Association of Realtors’ latest report, 4,620 attached and detached homes are currently available for the entire Denver Metro area. Historically, inventory is still incredibly low. Excluding the years affected by the pandemic, the inventory in April has not been this low since 2008. Competition remains stiff in popular neighborhoods and for well-priced, move-in-ready homes.
If inflation continues to cool, and the economy heads into a more recessed period, interest rates could potentially drop and more buyers could flood the market. Of course, this will depend on the resiliency of the job market and the fallout of bank failures.
Your Usaj Realty broker can help you make a fantastic game plan for your price point, neighborhood, and timing.
Tips for Home Sellers this Month
New listings are down significantly year-over-year with 4,758 new homes hitting the market (down from 6,890 last year). However, active listings (listings sitting on the market) are up 44.19 percent. Furthermore, “days on market” is up 262.5 percent from last year to 29 days. What does this mean for sellers? It means your first few weekends on the market are your best bet at making a fantastic first impression and getting top dollar.
To get a comprehensive market analysis of your particular neighborhood, we recommended that you speak with a Usaj Realty expert as the numbers in each part of town vary greatly.
Home Prices Down 5.6 Percent From Last Year
- The average home sold for $682,061 in April 2023
- The average single-family home sold for $772,170
- The average attached home sold for $471,997
April’s Numbers Over the Years
Avg. Days on Market
|Avg. Sold Price: Single Family Home||Avg. Sold Price: Condo||# of New Listings||# of Homes Sold||# of Homes Pending||Avg. Sold Price Change YOY|
|Apr. 2017||33||$487,974||$318,478||6,574||4,389||5,521||+ 10.53 %|
|Apr. 2018||20||$543,058||$351,488||6,917||4,384||6,097||+ 11.38%|
|Apr. 2019||28||$553,371||$368,565||7,518||4,675||6,470||+ 1.5 %|
|Apr. 2020||20||$550,177||$379,495||4,679||3,603||3,280||+ 1.52 %|
|Apr. 2021||13||$699,039||$444,252||6,699||5,088||5,941||+ 24.2 %|
|Apr. 2022||8||$825,075||$495,078||6,881||4,912||5,725||+ 17.11%|
|Apr. 2023||29||$772,170||$471,997||4,758||3,701||4,489||– 5.6%|
How Interest Rates Affect Your Monthly Payment
This year, the 30-year fixed mortgage rate has been fluctuating in the range of 6% to 7%. A meager 0.5% adjustment to your monthly payment can yield a big change to your monthly payment.
The Bottom Line
At Usaj Realty, we believe that investing in a home today can help guarantee your financial stability in the long run. We understand that the unpredictable ups and downs of the housing market can be daunting and intimidating to many people. That is why we are here to help. Our team provides the necessary education and strategy to navigate this market successfully.
Founded in 2011, Usaj Realty takes pride in assisting Denver homebuyers and sellers to reach their goals. We are available to assist you in beginning to create financial stability and securing generational wealth for the future.
Get in touch with our outstanding agents today to receive guidance on the Denver housing market.