Mortgage rates have started to increase from their historical low rates and are projected to continue to rise. As this occurs, the cost of acquiring your new home will increase as well.
The higher rates go, the less home you can buy! Loan guidelines state the maximum percentage of your income which can be allocated to a mortgage payment.
The above chart shows how your principal & interest payment increases for the loan amounts in the left column as rates rise by one-quarter percent increments.
Waiting for prices to fall could end up costing you more and rising rates will reduce the amount you can buy.
How is the Denver Real Estate Market?
Through September 2011, Buyers purchased $7.71 Billion is single-family residential and condominium real estate comprised of 29,980 transactions compared to
$7.78 Billion in sales and 30,286 transactions in 2010.
Denver Real Estate Market Recap for 2011 versus 2010 through September Year-to-Date
Single Family Overview:
- Active Listings Inventory (September) 17,625 versus 12,613 (-28.4%)
- Sales Volume (September-YTD) $6.77B versus $6.76B (0.2%)
- Transactions (September-YTD) 23,956 versus 23,933 (0.1%)
- Average Sales Price (September) $280,289 versus $290,025 (-3.4%)
- Average Days on Market (September) 99 versus 100 (-1.0%)
- Months supply of Inventory (September-YTD*) 4.7 versus 6.6 (-28.5%)
*average number of closed sales per month on a YTD basis divided by the current active listing inventory
Condominium overview:
- Active Listing Inventory (September) 2,920 versus 5,255 (-44.4%)
- Sales Volume (September-YTD) $956.6MM versus $1.01B (-6.0%)
- Transactions (September-YTD) 6,024 versus 6,353 (-5.2%)
- Average Sales Price (September) $159,980 versus $154,913 (+3.3%)
- Average Days on Market (September) 127 versus 107 (+18.7%)
- Months Supply of Inventory (September-YTD*) 4.4 versus 7.4 (-40.5%)
*average number of closed sales per month on a YTD basis divided by the current active listing inventory
What Happened?
Two years ago, the real estate pundits scared the markets into believing we were going to be deluged with bank foreclosures "Shadow Inventory" and that the average sales price would fall drastically. Well, their crystal ball failed them. The active listing inventory is at historical lows and the average sales price remains stable. In 2011, there is currently a 4.6 months´ supply of inventory compared to 6.8 months in 2010, which equates to a drop of 32.4%. Month´s supply of inventory "MSI" is an estimation of how long it will take for all the market´s properties to be sold, or absorbed, based on how many properties are currently on the market and the rate homes have sold in the past "absorption rate." Based upon the average number of closings per month on a year to date basis, divided by the current active listing inventory, defines the month´s supply of inventory for Single Family and Condominium properties. This is a fantastic time to transact real estate opportunities while taking advantage of the historic low mortgage interest rates.
Whether you are a first time buyer or an experienced investor, you will find useful information in this web site about how to choose the "right" property, making an offer, negotiating, financing, mortgage rates, moving, and everything involved in making an informed real estate decision in todays market.
If you currently own Denver Real Estate and are thinking of placing it on the market, this site contains information about preparing your home for sale, selecting the right agent, pricing your home appropriately, marketing it effectively, going through the inspection processes, and receiving a timely market evaluation.
