Slower growth, not falling prices
January is here! It’s time to see if the predictions are going to play out as expected. Experts have been speculating that the Denver market is beginning to stabilize, meaning that prices are going down and inventory is rising. That’s good news for buyers, especially those who were outbid all summer and gave up just before Fall. Some people may fear that prices are dropping, which is not necessarily the case. Year over year, prices are up 6.4%, and predicted to to rise about the same by next year. That’s moderate growth, not high, not low… “just right” you might say. This means you can’t take anything for granted. Do a detailed analysis before getting into any deal and make sure you have multiple exit strategies.
Rocky start to lending in 2019
While predictions for the Spring selling season are generally positive for Colorado, it has been a bit of a rough start in many other parts of the country. Even though mortgage rates are down there are fewer loan applications being processed. The government shutdown is also having an impact since lenders cannot verify some information with the IRS. Regardless, mortgage rates play the biggest role in affecting the real estate market, so staying around 5% keeps the market steady. The mortgage rate calculates how much a buyer can afford, so the higher the rate, the less house a buyer can afford. In a high-priced market like Denver, mortgage rates make a difference.
QUOTE OF THE WEEK
“The limits of the possible can only be defined by going beyond them into the impossible.“
~Arthur C. Clarke
See you soon,