The Current State of Denver Real Estate - November 11, 2022
If you are looking for a quick snap shot of the housing numbers, look at the bottom of this page for a link to the October 2022 housing stats provide by SMDRA. If you want to know what’s really going on in the Denver Housing Market today, keep reading!
Housing across the country is in decline. The Denver Housing Market is no different and in some instances, it is worse because of the unaffordability factor that was in place going into the downfall. Interest rates, have consistently been hovering around 7%, a huge increase from March when they were around 2.5% to 3.0%. Compared to the Jimmy Carter days of 14-15% for a home mortgage, rates are not anywhere near their highest point, but the Federal Reserve is still trying to tap down inflation by continually raising rates. With the median price still at $568,000 each percentage point increase raises the payment approximately $375.00 per month. You do the math; for a home loan at 3% vs. 7% that is nearly $1,400 more per month!
Prices have dropped considerably from their high in May, but they are still up year over year. So, as a seller, you should still have equity in your home, even if you bought within the past year. If you were lucky enough to buy years ago and haven’t refinanced, you should have plenty of equity in your home and would be in a good position to sell, if you are considering a move within the area or have decided to move to a more affordable state.
Buyers, take note, that rates did drop a little yesterday, so there may be some temporary relief on the way. There is still no doubt, that in order to accumulate wealth, the best way to do that is to own your own home. Hard assets is your best shield against inflation. So even with food and energy prices in unprecedented territories, with regard to inflation, housing is right along with them. So stop making your landlord’s payment and start investing in yourself.
We here at The Tucker Team can help get you on your way, if you are looking to buy or sell. Give us a call today to see what we have to offer and the many ways we can help during this difficult economic time. The use of real estate, is a great way to protect yourself, your family and your assets.
Click on this Link for the latest housing stats courtesy of SMDRA. October 2022 Denver Housing Trends
