Is Time Running Out to Get
a Good Deal on a Denver Area Home

September 12, 2024

If you read our TK Homes monthly newsletter, you may have seen the article I wrote back in May titled “Is Now the Best Time to Buy a Denver Area Home in 2024?”. There is one potential scenario I can see where time may be running out for buyers to get the best deals on a home. That scenario could happen if the interest rate continues to drop and hits 6 or the high 5s range.

Just to refresh, or in case you didn’t read my previous blog, although the interest rate is still high (it has come down a bit), there are many benefits for buyers right now. We have higher levels of inventory, so buyers have choices. We have officially started our fall slowdown, so buyers have even more choices. Because buyers have more choices, they can be pickier, meaning that can ask for more things during the inspection period. Buyers can also potentially, depending on the seller’s motivation, get a home for under list price and/or get seller concessions. Seller concessions can be used to buy down a buyer’s rate or be used to help pay closing costs or any prepaid fees.

Some buyers are only looking at the higher interest rates and not looking at all of the other benefits of buying now. You may have heard that the Feds may lower their rate on September 18^th. Some experts believe that just hearing that news has caused the rates to come down a bit. One of the seasoned lenders in our area recently posted on her Facebook page that she is starting to see remodeled homes priced a bit under the market value go for over list price. She believes that some buyers are starting to get out there due to the fact that we have seen rates come down a bit. I am withholding judgment and am waiting to get more data, but I can say that this past week TK Homes picked up three new buyers, and all three of these buyers were sitting on the sidelines previously. Now they are ready to act and get serious about their home search.

If the interest rate does not go down in September as a reaction to the decrease in the Feds rate, there are still talks about other Fed rate decreases before the end of the year. The election may also impact the interest rate. Although we can’t be certain what will happen as an outcome of the presidential election, we can say what is going on in our market currently.
 

If you have been waiting to buy a home for better buying conditions, now might be the time you’ve been waiting for. Interest rates have come down since the beginning of the year, inventory levels are higher, giving you more choices, and sellers that want to sell are willing to negotiate on price and inspection items. Don’t wait for rates to fall further and potentially increase buyer demand, causing homes to once again sell quickly for over list and with limited or no inspection items addressed. Consider this a sign that your patience has paid off, and take advantage of the buying conditions you’ve been waiting for. Contact a TK Homes agent today to discuss if now might be the right time for you to get off the sidelines and jump into the game. We are always happy to help!

~ Written by TK Homes REALTOR® Mary Smith