March Market Update
If you’re a buyer right now, you’re experiencing firsthand what is possibly the most competitive market we’ve ever seen. Homes are going under contract at incredible speeds and the offers made are very aggressive.
We are constantly hearing about low inventory, but Denver is always in need of additional inventory. So what exactly is happening? There are some additional factors at play other than lack of inventory.
Let’s break it down:
Record Low Mortgage Rates: Due to the nation’s economic changes, 12 million homeowners were able to take advantage of securing the lowest rates history has ever seen.
Strong Demographics: 33% of homebuyers today are first-time buyers with nothing to sell, meaning they can be nimble in making non-contingent offers.
Delayed Downsizing: Baby boomers are delaying downsizing by moving into assisted living, nursing homes, or in with family due to their heightened pandemic risk, holding onto those homes that younger families need.
New Build Prices: Lumber continued to spike up with futures up 35% on top of the already 170% rise we saw over the last ten months.
Remote Work: The pandemic has allowed people the freedom to work from anywhere, therefore drawing them to Denver from other parts of the country, or to suburban Denver from downtown now that commutes are less of a priority.
Pandemic Housing Policy: The freeze on Foreclosure and Evictions has put a pause on some potential market movement.
Even with these factors at play, it’s important that buyers don’t give up. Have a strategy and be sure to have realistic expectations.
With interest rates expected to rise to more normalized levels beginning in April, we’ll start to see a more even market in the coming months. If you’re a seller in the meantime, take advantage of this market in your favor - we need houses!
Source: Denver Metro Association of REALTOR®
Under Contract
Closed
If you know of anyone looking to buy or sell their home, feel free to reach out!
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Meg Pitkin
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BSW Real Estate
(815) 608-7482
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