Mortgage interest rates have increased about ¾ of a percent this year. That increase can affect affordability on the lower-mid price ranges but has not had a noticeable impact on those sales “high in demand”. Homeowners have experienced increased home equity, enjoyed low interest rates, and had the opportunity to sell their property at a profit while purchasing a new home.
The truth is that we have been spoiled! It is still a very healthy market, however, certain elements have softened up or hit statistical highs. Since July we are seeing a more balanced market for buyers and sellers. September saw about 1/3 of all homes that went under contract had reduced their price. Most of the homes were in the mid-upper price ranges where sellers were still under the impression that they could sell at the highest price, in less than a week. Traditionally it’s been considered a seller’s market when a home sells within 90 days. Currently, Denver averages under 30 days, but that number will definitely increase. In an average market, a home sells in 90-180 days. We need to live just a little less spoiled.
Denver prices will continue to increase, probably 5-7% in the next year and interest rates may rise another ½ point into the 5 ¼-5 ¾ % range. For those who were buying and selling in the 1980’s, we hoped for rates in the 7-8% range because we were living with 12-14% rates.
We are better off realizing that super fast gains are not sustainable, and we should enjoy owning our homes while having it be one of the best investments possible. The economics of supply-and-demand will generally dictate how long it takes to sell a home and the pricing attainable. However, there are many things you can do as a seller to positively influence both the timing and ultimate value of your home. Here are a few thoughts:
I fully believe this is a relationship-based business. As brokers we should focus on our client’s needs and objectives. It should extend to understanding their concerns and ideas, listening to pertinent past experiences, being sensitive to their timing issues and help educate them so they can make appropriate decisions. Buying or selling a home is possibly the largest investment they will ever make, thus it’s important! There are many brokers who suggest they are the best, have sold hundreds of homes, have the coolest technology, and blah, blah. The critical question is less about how great they might be, but more about how those things will benefit you. If they spent most of your time talking about themselves, they probably forgot about listening to you. The right real estate professional will assist you in making good choices. This is what a client should expect!