Market Update, March 14, 2024

David and Emmie enjoyed a walk through the snow today. We hope you’re safe, warm, and dry at home!

There’s been a lot of talk lately that homeowners aren’t selling because they’re “locked in” to low mortgage rates and don’t want to trade those low rates for higher ones.

We wondered how many homeowners in Colorado don’t have mortgages – a fortunate place to be.

Nationwide, about 2 in 5 homeowners don’t have mortgages. 

According to census data, more than half of owner-occupied homes in West Virginia (51%) have no mortgage. In Colorado, that number is much lower: About 29.8% of owner-occupied homes here have no mortgage. Maryland is the only other state with a less than 30% rate.

One reason for this could be that we’re in a very mobile state. If people stay in a home for a long time, they’re more likely to pay off their mortgage. 

As time goes on and more and more buyers purchase homes at higher interest rates – it’s been two years since we saw those 3% interest rates – fewer people will feel they can’t move. Some people will pay off their mortgages, too, and feel they have the freedom to move.

Other homeowners will have so much equity in their homes that they’ll be able to sell and then buy again without taking on very much new debt, so even if rates stay high, they won’t feel as burdened by them. In fact, we’re already seeing this with some people who are downsizing or even with some move-up buyers. 

As we move into the spring and summer, we expect inventory to continue to rise and buyer activity to increase. We expect much more activity in the market this year compared to last year. Although numbers are down compared to last week (see Activity below), that’s most likely because almost nothing is happening in the market today with all our snow.