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Hello ,

And just like that, the leaves have fallen, and snow is on the ground!

Interest rates continue to be the major factor in the current real estate market. At this moment, mortgage rates are in the high 7’s and buyers are finding it more difficult to qualify for financing. This is challenging but savvy home buyers are utilizing incentives to lower financing costs in the short term with plans to refinance when rates improve. When rates decline from current levels, it is expected that demand will increase significantly driving up home values again.

The details below explain some of the current market conditions in more detail. Contact me so we can talk about your plans and how to win in the current market (yes, it is possible). Lastly, I hope you, your family, and friends have an enjoyable Thanksgiving holiday.

Best regards,

Todd Holmes

Broker Associate, Realtor®RE/MAX Alliance serving the Denver metro areahttps://dot.cards/toddholmes (my complete contact information)https://toddholmes.remax.com

Five Star Real Estate Professional - 2023 - 10 Year WinnerRE/MAX Hall of Fame Award Winner

Key Market Data

The real estate market is in a unique position, and it has never been more important to consult an expert to fully understand the current data. Rising interest rates are making it challenging to afford a home, but options exist to help buyers obtain the dream of home ownership. The other hurdle for both buyers and sellers is the lack of home inventory. Take a look at the data below for some clarification.

Rising interest rates in the summer of 2023 led to a drop in the number of homes sold. Normally, you would expect to see prices decline but inventory is low (supply), helping to keep home values steady.

Demand is historically slow in the 4th quarter, which is typically followed by a strong spring market. Watch for demand to jump when mortgage rates eventually decline, even by just a small amount.

This chart compares the number of homes on the market and the number sold. When these two lines get close to each other, buyer demand is strong and homes are selling fast (Jan-Apr). With the most recent rate increases, you can see how sold listings declined and the gap increased (Sept-Oct).

Buyers do not have to compete for most homes and are able to get incentives to help with rates. When rates decline, demand will increase, and the market will be competitive again.

Sellers are facing a market where buyers expect a home to be updated, and in good condition. Updated homes are selling fast while those that need work are taking months in some cases. In this chart, Months Supply of Inventory is a measure of market condition. When supply is less than two months, it is still considered a ‘Seller’s Market’. Each neighborhood is unique. Let me know if you would like to see this information for your community.

Overall, higher mortgage rates are driving the current market by keeping inventory at low levels and slowing buyer demand (and affordability). In real life, buyers are still looking to own a home and sellers still need to move. If you, a family member, friend, or coworker need professional advice to navigate the current market conditions, give me a call. I understand the challenges and can help you reach your real estate goals.

Data: The reports above are from single family home sales in Arapahoe, Adams, Douglas, Broomfield, Denver, and Jefferson Counties.

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Recently Sold

Buyer in Parker, Colorado

I worked with a buyer to find this great, move in ready home in a planned community. The builder was offering amazing buyer promotions, and my client was able to get a great value. Along with a closing cost credit, the builder promotion reduced the mortgage rate for the first two years for this buyer. Congratulations!!

Why Is Housing Inventory So Low?

One question that’s top of mind if you’re thinking about making a move today is: Why is it so hard to find a house to buy? And while it may be tempting to wait it out until you have more options, that’s probably not the best strategy. Here’s why.

There aren’t enough homes available for sale, but that shortage isn’t just a today problem. It’s been a challenge for years. Let’s take a look at some of the long-term and short-term factors that have contributed to this limited supply.

Click Here for the Complete Article

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With some ingenuity – and a few storage solutions – you can transform a smaller kitchen into a fully functioning space that lives up to chef’s standards.

Check out these tips for making the most out of a smaller kitchen.

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Reminder

Don’t forget to adjust your clocks this coming Saturday evening! Move your clocks back one hour and enjoy that extra hour of sleep!

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