The usual activity we see this time of year has decreased due to economic uncertainty and higher interest rates.
Interest Rates Inched Up For the Month of May
Since November 2022, the 30-year fixed mortgage rate has remained consistently between 6 and 7%. In May 2023, they peaked at 7.14 percent.
Overall Economic Outlook
In May, the U.S. added 339,000 jobs and hiring remained strong. The unemployment rate, which is still at a historic low, slightly increased compared to April. However, rates ticking up in the month of May did not aid buyer certainty. Pending homes were down 23.16 percent from this time last year.
Tips for Homebuyers this Month
The latest report from the Denver Metro Association of Realtors (DMAR) states that there are currently 5,228 attached and detached homes available in the entire Denver Metro area. This is historically and seasonably low. This means that buyers are seeing tough competition for homes in popular neighborhoods, that are well-priced, and for move-in ready homes.
Affordability remains a serious issue for Denver home shoppers. The median sales price is $595,000.
A Real Estate Agent from Usaj Realty can assist you in creating a great strategy for determining your budget, preferred area, and ideal timing.
Tips for Home Sellers this Month
New listings are down year-over-year with 5,180 new homes hitting the market (down from 6,810 last year). However, active listings (listings sitting on the market) are up 43.15 percent.
Furthermore, “days on market” is up 144.44 percent from last year to 22 days. But down significantly from last month’s 28 days.
Home Prices Down 2.33 Percent From Last Year
- The average home sold for $697,534 in May 2023
- The average single-family home sold for $789,911
- The average attached home sold for $486,096
How Interest Rates Affect Your Monthly Payment
This year, the rate for a 30-year fixed mortgage has been varying between 6% and 7%. Even a small increase of 0.25% to your monthly payment could result in a significant change to your overall monthly payment.
The Bottom Line
The usual activity we usually see this time of year has been affected by economic uncertainty and interest rates.
At Usaj Realty, we can help you make informed real estate decisions by providing expert guidance, education, and strategies for budgeting, area searching, and timing. Our team of experienced brokers has the knowledge and resources to help you navigate the housing market with confidence and secure your financial future.
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.