The Denver real estate market has been interesting, to say the least, in the past couple of years. We have dealt with low inventory and low interest rates, which has caused a frenzy of multiple offers on properties with offers that are crazy high over list prices. Lately, our market has changed, and some would say that this slowdown is just what buyers have been waiting for. This change has been caused by a very substantial increase in the rate interest. If you are planning on buying in the near future, there are some things to consider. You may find it surprising that although we know there are concerns, there are positive reasons to buy in the current market.

The main things to consider are that with the interest rates being higher, your monthly payment could be higher, and you may find that you have less buying power, meaning you may not be able to afford as much as before. Because of this, it is important for you to consult with your lender, so they can help you to figure out what you can afford and what your payments will look like.

There are also positive reasons to buy at this point. Although we do not have a crystal ball, it is unlikely that the interest rates will go down in the near future. So, if you are thinking of waiting to buy, you may want to take advantage of where the interest rates are today, so you don’t pay even more later. In thinking about it, if you are not comfortable with where the interest rates are now, you will most probably not like it when they go even higher. Also, we are starting to see a bit more inventory, meaning there are more homes on the market.

We seem to be getting our fall slowdown a bit early this year. Some homes are selling at list or even below list, which means buyers aren’t having to pay $50,000 - $100,000 over list in order to get their offers accepted anymore. We are also seeing objections to inspections again as well, so buyers aren’t having to accept a house in as-is condition to be competitive. Finally, appraisal gaps are less common now because as previously mentioned, buyers are not always having to go way over list price.

From what you are hearing in the news and in the community, it may seem like it is not the best time to buy. However, depending on how you look at it, that may not necessarily be the case for the reasons mentioned above. Realistically, we are actually seeing more of a traditional market that we haven’t seen for years. Ultimately, there are many things to consider when thinking about buying in the current market. At TK Homes, we would be happy to talk to you more about your situation and whether now would be the best time for you to buy. Contact us today for a free consultation, and let’s see if buying a home is in your future!

~ Written by TK Homes REALTOR®, Mary Smith