The Current State of Denver Real Estate - January 18, 2023
For the past year now, the economy has been turbulent. From being told there is no inflation; to ok, there is inflation, but it’s transitory; to yes we have inflation, but it’s due to consumer demand, so let’s raise interest rates to slow the economy down; to finally, we’ve raised interest rates too quickly and now the US economy is in a recession! Part of the fallout we’ve seen from high interest rates is existing home sales falling for the tenth straight month in a row along with housing prices. The question now is, how do you protect yourself as the dollar continues to decline?
One option is to use the equity in your home to get out from underneath high credit card debt, car loans and other debt with extremely high interest rates. Another idea may be to buy hard assets. Although real estate may be going down now, historically, real estate has always gone up. This is your chance to perhaps purchase an investment property, or if you are currently renting, protect yourself from increased monthly rents, by investing in yourself and purchasing a home. If you are 62 or older and already own your own home, you may be in a position to get rid of your monthly mortgage payment altogether, or have your house pay you, by using a home equity management loan. We at The Tucker Team would be happy to talk to you about the various options available, to help you become more financially secure during these unprecedented times.
There is some good news, as mortgage rates have ticked down a little this week, because of the depressing economic numbers coming out. With home prices down and rates also declining a little, this could be a good time to get into the home buying market. Sellers are offering concessions, as well as price reductions. If you are thinking of selling, as you can see from the Housing Stats link below, inventory is well below the numbers seen last year. So, before more homes come out in the Spring, this could be a good opportunity to put your home on the market while it is a little less competitive.
Take some time to think about what is best for you and give one of us a call! If you think you may want to buy or sell your home, refinance, or purchase an investment property, we are here to help.
Click on this Link for the latest housing stats courtesy of SMDRA: December 2022 Denver Housing Stats