November 2022 Market Upd8
DENVER MARKET UPDATE - NOVEMBER 2022
With the election cycle, rising rates, the war in Ukraine, and our own personal vicissitudes, the only thing certain in October’s real estate market is it’s continued uncertainty. Buyers and Sellers are facing off and holding their ground, each hopeful that the market will swing their way.
The truth is, no one has any idea where the market will head, although we can be certain rates will not double again in the next 6 months as they have over the last 6 months. Rising interest rates are in response to rising inflation and an overinflated Consumer Price Index (CPI). The good news is that the Federal Reserve is achieving some success in bringing down inflation. If the FED can get the CPI to 4.5% in January (down from 8.3% in October) and 4% in June, we may see rates return to 4-5%. With today's CPI numbers, the FED seems to be on its way to achieving its goal and the mortgage market is responding with a surprising 0.7% decrease in interest rates! However, if the CPI is slower to respond, what we hoped would take a few months may end up taking a few years and interest rates may not make any significant declines until Spring 2024.
Inventory fell slightly to a total of 7,290 homes available for sale in the Denver Metro Area (defined as the following 11 counties Arapahoe, Adams, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Park, and Jefferson) and for the first time this year median and average sales price decreased by 1.36% while remaining 8.22% higher year over year.
If you risk tolerance is low, or life demands you move now, I recommend you take the plunge. After all, now is just what we worried about yesterday.
Buyers: Homes that have been sitting on the market for longer than the average 28 days (check the price strata days on market average for additional accuracy) are likely ready to negotiate, and with nearly a 1% reduction in rates this week, now is THE BEST TIME TO BUY IN Q4. Please reach out to be on our list of lowest prices per square foot homes and homes on the market over 45 days. If you are looking for highly leveraged opportunities, this is where you will find them!
Sellers: 8.22% appreciation is still incredible and above what the Denver Metro Area's average appreciation was prior to the pandemic recovery - 6%, which is still TWO TIMES the National Average. Take your remaining equity and go! We are sitting down with our Sellers now to plan for early Q1 launches. Please reach out if we can help.
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