Mortgage interest rates have climbed again. Today, the average rate for a 30-year fixed loan is 6.03%. A year ago, the average rate was 3.17%.
The payment on a $650,000 home has gone up more than $1,000 per month in just one year. But a home that would sell for $550,000 a year ago may cost $650,000 this year. So, to get the same house today versus one year ago costs some buyers about $1,500 more per month.
Buyers are feeling the squeeze, and the market is beginning to cool. They’re looking for the best deal possible and feel like homes are over-priced (even when they aren’t). So if you sell a home soon, the key to attracting buyers will be pricing it correctly and preparing it well.
Homes are still in demand and selling quickly. Despite the cooling, this continues to be a seller’s market. But sellers can’t ignore which way the wind is blowing. Realize that other sellers are preparing their home’s interiors and exteriors perfectly, pricing well, and attracting buyers.
When you sell, you want maximum interest – the more buyers interested in your home, the more likely you are to get multiple offers and the price and terms you want. If you price and prepare your home well, you can still expect it to sell fast and for top dollar.
If you don’t price well, your home may languish on the market for months while you reduce the price to chase buyers.
There’s a home for sale in Lowry right now (not one of our listings) that started at $600,000. They’ve reduced the price to $585,000, but the home is still for sale 28 days after it went up for sale. Sellers of a single-family home in Denver (again, not our clients) reduced their asking price from $600,000 to $585,000. Their home has been on the market for 47 days. In Westminster, a townhome for sale has been on the market for 41 days. The sellers have reduced their price from $575,000 to $550,000.
Don’t chase buyers with price reductions. Understand that the market has shifted. Interest in your home peaks right after you list it. You can reduce the price later, but by then, the buyers who were most likely to buy it have moved on.
Ready to make your move? We can help you navigate this changing market. Call David and Tom at 720-782-2468 to get started or schedule a free phone consultation.
Metro Denver Real Estate Market Activity
During the last week:
New Listings – 1842
Back On Market – 319
Price Increase – 120
Price Decrease – 1407
Pending – 1647
Withdrawn – 183
Closed – 1421
Expired – 130
Previous Week:
New Listings – 1992
Back On Market – 277
Price Increase – 103
Price Decrease – 1241
Pending – 1714
Withdrawn – 179
Closed – 1555
Expired – 131
—
Based on data from REColorado®