What can you expect from the real estate market in 2017? Is Denver in a buyer’s or seller’s market?
Right now, Denver is in an extreme seller’s market.Traditionally, inventory is a little light at the beginning of the year. However, there is even less inventory right now than there has been in years past.
Since inventory is so low and demand is so high, there is upward pressure on home prices. It all boils down to supply and demand. Since there aren’t many homes on the market and there are many people interested in buying a home, home values are on the rise.
Since Donald Trump has become president, interest rates have been steadily increasing.Before the election, the average interest rate was 3.87%. Now, the average interest rate is 4.25%. That alone will make purchasing a home more expensive for buyers.
Rising interest rates and rising home values are putting a lot of upward pressure on affordability. If you are in the market for a home now, there are two things you can bank on: that house will be more expensive next year, and the cost to borrow money will go up. There is no better time to buy a home than right now, before it starts to become too expensive.
As for sellers, higher interest rates actually work to your advantage. A lot of buyers are jumping off of the fence and into the market before rates go up again. So, even though we have a shortage of inventory, we are seeing even more interest in the homes already on the market.
If you have any other questions about buying or selling a home in our current real estate market, give me a call or send me an email. I would be happy to help you!