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Is Now the Best Time to Buy
a Denver Area Home in 2024?

May 16, 2024

Due to the interest rates being high, many buyers are sitting on the sidelines. This continues to be the main reason they are not buying. Surprisingly, there are other factors that most people aren’t thinking about that could potentially make now the best time to buy in 2024. You may be scratching your head after reading the last sentence and wondering what could I possibly be talking about.

 

First, what most people don’t think about is that if and when interest rates do go down, although that will help buyers, it could potentially also hurt buyers. What I mean by this is if interest rates do go down, then buyers who have been sitting on the sidelines could flood the market. This could make it so that there is a feeding frenzy again, which brings lots of competition and potentially offers way over list. If this happens, buyers could have difficulty competing against other buyers and lose out on multiple homes they are trying to purchase. This would mean buyers could potentially get “beat up” when trying to purchase a home. As you know, what the Feds do with their rate impacts our interest rates. Of course, we don’t know for sure if there will be a decrease in the Feds’ rate. If it happens, it is predicted to be later this year, so buying now may be a good idea before the feeding frenzy and large appreciation that lower interest rates could cause.

 

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Second, right now we have more inventory, so buyers have choices. If a home a buyer likes goes under contract, then there are other homes out there that could potentially meet their criteria. There is no need for buyers to fight over the same home just to find a place to live. Of course, this is in our current market.

 

Third, right now, buyers are not usually buying properties as-is. We are seeing longer Inspection Objection lists. We are also seeing items that aren’t related to health and safety being added to the Inspection Objection list. Recently, we have seen more homes terminate based on inspections. Again, it goes back to the fact that buyers have choices as mentioned above. If buyers wait until the interest rate comes down, there is a possibility that with all of the competition, buyers will no longer be able to ask for the things they are able to ask for now. In order to compete in the future if interest rates go down, the situation could go back to buyers having to buy as-is to be competitive with their offers. At this time, some price points are actually considered to be buyer’s markets. For example, if you are buying at $750K or below, that price point in the Denver metro area is considered to be a buyer’s market. This is even more evidence that now may be the best time to buy.

 

Of course, every buyer’s situation is different, so it is important to talk with your TK Homes agent to figure out what makes the most sense in your particular situation. Whether you are looking to buy or sell, or both, we would be happy to help you. Contact a TK Homes agent today, and let’s figure out what is best for you at this point in your real estate journey!

 

 


~ Written by TK Homes REALTOR® Mary Smith

 

 


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