Market Update, August 3, 2023

Insufficient inventory has been the driving force in our local market for months. Lack of inventory keeps prices from falling, and sellers are reluctant to put their homes on the market because they fear they won’t find the right home.

But there is hidden inventory out there if you know where to look.

It’s in new communities.

During the past week, I got a text from a builder saying they have 24 homes that can close before November. All those homes are in just ONE COMMUNITY! 

Another builder emailed me with 47 homes available throughout the metro area. One major builder is having a “Quick Move-In Event,” with dozens of homes available now throughout Colorado. When I contacted other builders this morning, I learned they all have many homes that are move-in ready or that will be ready within a few months.

There’s widespread inventory in new communities for a variety of reasons. Most of all, we’re seeing more “quick move-in” homes because buyers signed contracts to purchase homes and then pulled out of their agreements as interest rates rose.

Builders want buyers to refrain from terminating contracts, so many offer incredible financing options and even lower home prices. In fact, last week, we showed one brand new home that had just been reduced in price by 15%.

Some builders offer long-term rate locks, which let buyers lock their interest rates immediately, with the option of locking a lower rate later if rates drop. When builders offer a rate buy-down, rates can be as low as 3.99% for the first year, 4.99% for the second year, and 5.99 after that. One builder is offering a 4.25% thirty-year fixed rate!

All types of fantastic deals are available for quick move-in homes and homes that will be built soon, which you can customize.