What in the world is going on with the Denver housing market?

[Kenny Smith]

...what in the world is going on with the Denver housing market?

1. Inventory is very low - for all of the homeowners that bought or refinanced during COVID that have a sub 3.5% interest rate don't want to sell when rates are at 7%. Why? If they are trading up, why trade a 3% rate for a 7%. We may continue to see inventory issues until sellers feel there isn't a huge gap in rate exchanges when trading up.

2. Luxury housing has slowed - the entry level home in Denver still stands at roughly $500k-$600k. During COVID, folks were able to afford a little bit more seeing rates were so low and their monthly mortgage was kept down. Now, they are getting priced out of those more expensive homes because of affordability with rates. Now, there the entry level home price point of $500k-$600k has seen a huge uptick. A nice home priced right and in a good location, is still selling quick!

3. Rates will ulimately decide where the market goes - having already mentioned the importance of rates to sellers..rates of course, have a huge effect for buyers as well. Some buyers are considering waiting until rates to drop to get into their home. Seeing a large numbers of buyers are considering this strategy, if rates do drop and many get into the market at the same time, this will likely cause home prices to go back up.

Bottom line - we need more inventory. Inventory would put us in more of a balanced market for both buyers and sellers.

Thanks for reading!