Buying a home is a big deal—probably the biggest purchase you'll ever make. It's a deeply personal journey, and being in a strong financial position is key before you take the plunge! You may find yourself in this position currently or trying to figure out the next steps to take to better prepare you for when you are ready.
Wondering how anyone can afford a house at these current rates? I get it! No matter how many times I look at the graph that says we are in a “normal” range. It pains me to know they’ve doubled in the past few years.
But what does that mean for you?
The rise in mortgage rates and home prices has made it tough for many buyers. But there’s a silver lining— Fannie Mae still predicts an increase in home sales this year compared to last! That’s a positive! And while home prices are still climbing, the pace is slowing down, and that's some good news for buyers.
Remember, these trends can vary a lot by region, so it’s always smart to keep an eye on the local market. Here in our local market we are seeing
Douglas County has performed relatively strong overall this year
For the month of May, sales are up 20% year over year from 559 in 2023 to 669 in 2024
Total home sales for the year are up 7% from 2,274 in 2023 to 2,441 in 2024
And despite high interest rates, home prices are up 2% YoY with a median sales price of $720,000
As is normally the case, homes +$1M are seeing longer days on market at around 20 DOM leading to about 4 months supply of inventory, but homes priced between $600-700K are seeing shorter DOM at around 7-10 so only about 2.1 months supply of inventory.
Across Denver Metro as a whole, home sales in May are also up nearly 26% YoY from 3,343 in 2023 to 4,163 in 2024 and total home sales for the year are up 10% from 13,225 in 2023 to 14,506 in 2024.
However, the median sales price for Denver Metro has fallen 4% to $625,000 providing some relief to buyers.
https://insights.livsothebysrealty.com/r/4dd77ecafc - Douglas County
https://insights.livsothebysrealty.com/r/04ddbeeba9 - Denver Metro
I think in order to finish out 2024 strong, we need to see more homes for sale. This would ease the pressure on home prices and maybe even bring them down a bit from their peak levels. However, mortgage rates also need to cool off, which seems to be taking longer than hoped. As of late May, the 30-year fixed mortgage rate was around 6.94% and yesterday’s announcement from the Fed reduced the rate a bit further so we may be headed in the right direction.
A wise real estate agent once said… “The perfect time to buy is when you find a home you love, that suits your family's needs, and fits your budget. Holding out for ideal market conditions might be a bit of a fantasy since prices seem to be always on the rise, making it harder to save for a down payment.”
Oh wait, that was me! I said that.
Stay strong, stay informed, and let's make those homeownership dreams a reality! Now or later! I’m on your timeline either way, but always here to help!
Rachel Goodman
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