Current Market Conditions
The Colorado real estate market is still a very hot sellers market. The market did slow down a bit around the holidays, but it has come back full force with the beginning of February. We attribute the slow down around the holidays to the fact the buyers simply put buying a house on hold until the holidays had passed. Buyers have reentered the market place aggressively and the number of buyers are increasing daily. Housing inventory has also remained near record lows and we do not expect inventory levels to raise drastically until early spring.
What does this mean to you as a homeowner?
Right now is the perfect time to sell because inventory (your competition) is still incredibly low and buyers are entering the market place at increasing rates. We are seeing multiple offers and properties are selling fast and for top dollar. To give you an actual example: we listed a property on 02/04/2013 and using our unique marketing, we were able to procure a contract in less than 12 hours that was $12,500 over asking price! This is not uncommon if you are able to strategically position and effectively market your home.
What does this mean to you as a potential homebuyer?
You need to stay on top of the market and you need to act fast. If you are searching for real estate on your own, avoid the big national websites like Zillow, Trulia, and REALTOR.com. These sites are not updated directly from the MLS and therefore are usually 3 days or more delayed getting new listings.
Try using COListings.com which updates directly from multiple Colorado MLS’s every 15 minutes to ensure you don’t miss your perfect home. You also want to team up with a competent, hardworking REALTOR who will stay on top of the local market and is available to show you homes on the same day they hit the market. At CO Listings, we developed a team of professionals to make sure someone is always available to show you a home on the same day!
Where are we headed?
We are expecting a rush of new listings to hit the market starting in March and moving forward into the spring. This rush will increase inventory and if the influx is large enough it could make home prices flatten. Conversely we are also expecting an influx of buyers, but that may flatten out due to interest rates. The ratio of buyers to sellers will always be one of the major determining factors in short term price gain or loss. The big question mark and concern on the horizon is interest rates. Interest rates are expected to increase as we enter the spring and through the rest of 2014. The big question mark is how much will they increase and how quickly? No one knows for sure, but some experts have estimated that it could be as high as 6% by the summer. A higher interest rate means that buyers’ purchasing power decreases and could even price them out of the market. To give you an example: If a buyer is qualified to purchase a $350,000 home with a 5% interest rate, they can only afford a $310,000 with a 6% interest rate.
What does this mean for you?
Now is the perfect time to both sell and buy. If you are thinking about buying a home you can currently afford a larger more expensive home for less money than this summer. As a seller, the competition is still low as mentioned above, but it won’t stay that way. There are also more buyers in the marketplace who can afford your home. As a buyer or seller, you do not want to miss this perfect scenario that currently exists in the marketplace. It will not last long! Contact us today to learn how you can take advantage of the current market.