More inventory and favorable rates
/Buyers who haven’t been able to find or purchase a home in this extremely competitive market may finally be getting a break. Although buyer demand is still high in metro Denver, we’re seeing an uptick in inventory. For the first time in months, new listings were up in March compared to a year ago.
Why are more houses for sale?
Rising interest rates is one reason. Higher food and gas prices are another. The combination of higher rates and rising inflation is causing some buyers to take a wait-and-see approach. Their reluctance is creating wiggle room in the marketplace—something we haven’t seen in a long time.
What if the Fed raises interest rates again?
Keep in mind that a quarter or even a half point increase would still put rates in the mid-single digits. Historically, that’s a safe place to be.
Owning your home vs. paying rent
It’s worth looking at owning your home versus renting in a real estate market as robust as the one we’re in. Even though the cost of a mortgage is inching back up to near-normal levels, it’s always to your advantage financially to own rather than rent. As interest rates climb back up, rents are rising to keep up with inflation. You may be paying more to own, but you’re also paying more to rent.
Rising rents and high demand make this an opportune time to consider purchasing an investment property. If you can swing it financially, owning rental property is a terrific way to accrue wealth over the long term. We’re well versed in the pros and cons. A conversation with one of us can help you decide if investment property makes sense for you.
Whatever your real estate interests might be, we’re here to help you better understand the market, look at the trends, and decide what’s best for you and your family. Give us a call. The first step is educating yourself. Let’s talk … but first, please hit the heart and like our newsletter. Thank you!