Many media outlets are forecasting doom & gloom scenarios, for the Denver real estate market in 2023. These predictions have caused many people to panic, wondering if they should sell their homes now or wait it out. But what does this mean for the average person?
Marybeth Brush – REALTOR® with EXP Realty in Denver, Colorado mentioned that she doesn’t foresee a housing crash. While the media keeps saying our Real Estate Market is suffering from a "Crash" - it most certainly is not, says Marybeth. "The Real Estate Market, here in Denver, has been shifting over the last 6-9 months due to higher interest rates - but there is NO bubble and certainly NO crash. When interest rates go up, that forces more buyers out of the market, therefore, forcing housing prices to come down. But it all depends on your location, curb appeal and interior updates of your home and MOST importantly if your home is priced right out of the gate. If a seller lists their home above market value during a shifting market, they are going to lose out on the majority of the buyer pool for their home and their home will sit on the market. Sellers continue to want to see the ‘covid market’ where we had homes going under contract for $50,000 to $100,000 over list price and buyers were waiving inspections & appraisals, but those days are GONE!"
The biggest piece of advice for this market, according to Marybeth, is for both Buyers and Sellers to listen to their Real Estate Advisors and look at the current data - not data from 6 months ago. Marybeth Brush REALTOR® EXP Realty.
Cache Nies - Mortgage Advisor with Intercap Lending offers his insight. “With the current economic climate, now is an exceptional moment in time for potential homeowners to take advantage of this market shift and secure their dream home. Potential homeowners right now have a brief window of opportunity. With interest rates doubling in 2022 from their historic lows, the market has completely shifted. Homes that had been receiving 20-30 offers, often over asking price in 2020 & 2021, now are sitting on the market for extended periods of time. This shift has transformed the market from a sellers to a buyers’ market. Potential homeowners now are receiving seller concessions that they were not able to get before. These credits can help in several ways from covering the closing costs, to buying down the interest rate. In some cases, clients are even getting the home at a discount. A very popular option that many of my clients are taking advantage of is called a 2-1 buydown.
This allows them to lock in a lower rate for a fixed amount of time, and then refinance later on once rates come down further.”
“Mark my words fortune favors the bold. With inflation dropping, interest rates will follow suit. We are still at near record lows for inventory, and because of this once rates drop, we will see buyers enter back into the market, and home prices sky rocket.”
He provided this article on tips to get the best interest rate when shopping for a home. “How To Get The Best Interest Rate.”
“The market is waking up!” says Sallie Simmons REALTOR® co-owner of the Simmons/Ridl Group with Compass Realty. “While we are typically slower this time of year, we are seeing more inventory and more homes going under contract during the first weekend on the market- which is great news for sellers. We are also seeing more competition in the market- even seeing multiple offer situations again for the first time in a bit (although not 30-40 offers like last year). Sellers are still expected to make repairs and have a staged home and be priced right to benefit from this part of the market. Temporary buy-down offers have become the norm to help to ease the pressure of rates until they potentially go down again. Buyers need to know that it is a great time to get out and take advantage of the market, and sellers are still in great shape too! The one thing you truly need to have on your side is a professional who knows the subtle swings of the market to get you in to take advantage of what you need at the right time!” Sallie Simmons REALTOR® Compass Realty.
When asked his thoughts on the state of the market. Paul Witmer REALTOR® With Sotheby’s International Realty provides. “After two years of unprecedented market activity due to COVID, the Denver Metro housing environment is beginning to adjust back towards a healthier state. Current data reflective of pre-COVID trends provides more predictability for buyers and sellers alike planning their next move in this dynamic market. In addition, interest rates are predicted to remain low over the coming year with an encouraging chance at hitting record lows by 2024 - particularly beneficial news for those looking into taking advantage of today's robust buyer’s markets but wary about affordability down the line. Unfortunately however, inventory levels currently stand drastically unbalanced; properties valued under 500K boast only a 0.8 month supply while homes rated above face a 1..2 months disparity respectively as we enter 2021- therefore any potential investors should act quickly!” Paul Witmer REALTOR® Sotheby’s International Realty
Karen Esquibel REALTOR® managing broker with Emerald realty also shares similar thoughts. She states that “although the real estate market has slowed down it is seeing signs of life. The availability of housing is still true to be a low inventory market. Although the rates have gone up, we won’t see crazy bidding wars like we did the last few years. However, buyers are seeing a great advantage when negotiating inspection items & closing costs. I’d say it’s definitely a good time to be a buyer again!! Less bidding wars & opportunities to negotiate closing costs paid by sellers.” Karen Esquibel REALTOR® Emerald Realty Denver
Follow These 5 Steps When Buying Your First Home.
About Intercap Lending
“Intercap Lending is a direct Fannie Mae, Freddie Mac, and Ginnie Mae lender that offers a wide variety of loan programs and in-house underwriters who follow agency guidelines for faster closings. We have a large portfolio of FHA, VA, USDA, conventional, and non-conforming loans. Our portfolio also includes specialty programs like 203k, down-payment assistance, reverse mortgages, and bank statement loans. We also have strong relationships with numerous jumbo loan programs and other niche lenders and investors.”
Company Name: Intercap Lending
Contact Person: Cache Nies
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Address:11781 South Lone Peak Parkway Suite 200 | NMLS # 190465
State: UT 84020
Country: United States