Interest Rates are LOW and Inventory is UP
Here’s some great info from Joe Massey at Castle & Cooke Mortgage:
If you haven’t seen the news lately, you might have missed two important factors in the Denver real estate market right now.
1 – Interest rates have been decreasing recently reaching a 21 month low in the most recent survey completed June 7th at an average of 3.86% for a 30 year fixed.
2 – Inventory is at a 6 year high with more than 8700 new listings in the month of May.
These two situations combined are making for a great opportunity for buyers to get off the fence and purchase now. For a quick comparison on how this can impact your buyers, let’s look at what it was like to purchase a home in June of 2018 vs. June of 2019:
June 2018 SFR Median Price = $451,500
June 2019 SFR Median Price = $470,000
June 2018 FHLMC Average Interest Rate = 4.62%
June 2019 FHLMC Average Interest Rate = 3.82%
Therefore, the average P&I payments in these two time periods:
2018 = $1,853
2019 = $1,756
So the median monthly payment for a home in Denver has gone DOWN by $100 over the last 12 months. This is a terrific opportunity for you to purchase a home for a smaller payment than your would have had last year. Combine that financial opportunity with the increased inventory which may allow you to get a price reduction and/or seller concessions. This is the best opportunity that buyers have had in the last several years.
This is a fantastic time to purchase properties!
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