Colorado took part in a massive home price appreciation in the past two years. Recently all the major appreciation markets took the hardest hits on price drops. Colorado was included in this. However, the price drops have not been as much compared to California, Arizona, and Idaho.
In October:
Colorado Springs, CO: SFH Average sale price: $532,400
Selling 3.2% below original price
Roughly $17,000 lower
Denver, CO: SFH Average sale price: $893,085
Selling 3.2% below original price
Roughly $28,500 lower
Lakewood, CO: SFH Average sale price: $656,650
Selling 3.8% below original price
Roughly $25,000 lower
Aurora, CO: SFH Average sale price: $572,997
Selling 3.2% below original price
Roughly 18,000 lower
With rates not coming down until 2023 this leaves 2-3 months of more time for the housing market to lower in price.
What this means for sellers:
1) If you have held your property for 5+ years you will likely make a profit on the sale and you should have lower expectations on what you could make if you sell now.
2) If you do not have to sell your property... don't. Looking to rent out the property could be a better option. This will allow you do get a good deal for a new property as well.
3) If you have owned your home for 2 years or less there is a high chance you will not make a profit on the sale or even have to pay for the sale of the home after agent commissions. If you do need to sell there are other ways to sell the home off market to save you some money. Send me a message if you're interested:)
What this means for buyers:
1) Real estate is being priced lower right when listed. The longer it sits the more opportunity you have to get a good deal.
2) Yes, interest rates are high and will give you a higher mortgage payment. You have options to either buy down the rate using seller concessions, keep the rate and refinance in six months soonest when rates are lower. The game of refinancing can be tricky and you need to compare the value of buying the rate down now vs having no rate and refinancing vs not refinancing. Stay connected with your lenders after you close to refinance asap when rates lower and to get their advice on when to do so.
3) No more appraisal gaps! No more needing a huge lump of cash up front to make a deal happen. I recently helped someone close and they got paid $190 at closing using a VA loan!
"You make money when you buy real estate" - Every real estate investor ever....
When you own real estate you get the benefits of loan paydown, appreciation, rental income, tax benefits, and ways to access lines of credit. Now is your time to benefit from real estate.
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