Are you still waiting to get into the real estate market when it is a perfect time? If you are then let me know when that time is. We can make some serious money. Thinking you can time the inflation or the recession? Well, even the Federal Reserve Chair Jerome Powell admitted, "WE NOW UNDERSTAND BETTER HOW LITTLE WE UNDERSTAND ABOUT INFLATION." We may see that we didn't need to be doing quite so much quite so fast, or maybe we'll see we needed to do more. And there were 110 economists and housing experts that did a second quarter 2022 home price expectation survey. The mean of all the panelists believes the 5 year average of appreciation will be 4.8 percent. This is above the historical 3.6 percent appreciation. The housing market has not frozen, despite what some media is presenting, it has cooled off a bit but let me give you some true stats.
Thanks to the Denver Metro Association of Realtors, Nicole Reuth with Fairway Mortgage, and the Stats Committee at DMAR. They do an outstanding job presenting the numbers as they truly are.
38% of homes nationwide are owned free and clear. In Colorado there are only 1.8% of homes with a mortgage that are delinquent with their payments and only 0.1% are in foreclosure. Even with inevitable recession concerns, the record levels of equity in homes helps alleviate people walking away from them as we saw in 2008 because their homes had no equity. They simply would need to sell them and make money.
Begs the question, why is our inventory still low, even though we hear there are more homes on the market now?
The increase in inventory that we are seeing could also be because of increased interest rates, just a normal increase in inventory for this time of the year, and people moving out of Colorado because of affordability.
People are still buying. June mortgage applications were up 17% from the beginning of June. There are not as many buyers out there, so now is a great time to start looking.
Sellers need to take into account that they can't list their homes for what they were closing for from January to May. Our market is in a transition. We are hearing about a number of new and renewed mortgage loans to help with the increase in interest rates. Despite what the news says, people can qualify to purchase a home it just may not be at the price point they could 3 months ago.
Contact us with any questions. Remember, I do not have a crystal ball, there are so many factors that can change the landscape of real estate. But what the market is as of right now is what I am reporting. Until next month. Stay cool.
Thanks to the Denver Metro Association of Realtors, Nicole Reuth with Fairway Mortgage, and the Stats Committee at DMAR. They do an outstanding job presenting the numbers as they truly are.
- Inventory exceeded demand in June for the first time since June 2020. June ended the first half of the year with Cryptocurrency down 60%. The stock market had its worst first ½ of year since 1970 and inflation hit a 41-year high. Yikes, however, housing is up 16.5%. Yay.
- In 2022 the YTD median price growth is one and only 1% lower than 2021.
- Our median days on the market was 4 in June and the average days on market increased from 1 to 10 days. Our months worth of inventory was 1.2 months. If everything on the market at the end of June sold, it would take 1.2 months. Our inventory is still 80% less than what we need to make a balanced market which is 6 months of inventory.
38% of homes nationwide are owned free and clear. In Colorado there are only 1.8% of homes with a mortgage that are delinquent with their payments and only 0.1% are in foreclosure. Even with inevitable recession concerns, the record levels of equity in homes helps alleviate people walking away from them as we saw in 2008 because their homes had no equity. They simply would need to sell them and make money.
Begs the question, why is our inventory still low, even though we hear there are more homes on the market now?
- 75% of all mortgaged homes have an interest rate at or below 4%. This is causing a rate lock, people are choosing to stay in their homes longer.
- Baby boomers are staying put in their homes.
- In the first quarter of 2022 20% of the homes were purchased by investors.
The increase in inventory that we are seeing could also be because of increased interest rates, just a normal increase in inventory for this time of the year, and people moving out of Colorado because of affordability.
People are still buying. June mortgage applications were up 17% from the beginning of June. There are not as many buyers out there, so now is a great time to start looking.
Sellers need to take into account that they can't list their homes for what they were closing for from January to May. Our market is in a transition. We are hearing about a number of new and renewed mortgage loans to help with the increase in interest rates. Despite what the news says, people can qualify to purchase a home it just may not be at the price point they could 3 months ago.
Contact us with any questions. Remember, I do not have a crystal ball, there are so many factors that can change the landscape of real estate. But what the market is as of right now is what I am reporting. Until next month. Stay cool.
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