DENVER – Metro Denver’s housing market has taken a big turn. It is now among the most vulnerable markets in the country, according to real estate brokerage firm Redfin.
The Redfin risk score is based on interest rates, home sales and price declines.
It may not be the best time to buy, but for many it’s better than a few months ago.
“Oh, that’s beautiful,” Shauna Morse said as she walked through a house in the Jefferson County market. “We had an explosion in the market and then all of a sudden it kinda quieted down.”
Recession fears and higher interest rates are contributing to a shift in the market, but most experts advise taking a deep breath whether you’re a buyer or a seller.
“Prices are down more than 20% from the April and May height,” said Lori Abbey of The Abbey Collection at Compass Real Estate. “But they’re still up 10% from the same time last year.”
On the seller’s side, property experts like Abbey say that if your price is right – and you don’t have to lower the price – you always get about 1% more than the asking.
“We’re still heading into a seller’s market,” Abbey said.
On the buyer side, things have also calmed down.
“Six months ago, a buyer was looking for a ‘better interest rate,’ but he was also looking for homes that consistently exceeded the list price by $25,000, $50,000, $100,000 or more,” said mortgage broker Jimmy Everetts, owner of Everetts Lending. .
Everetts says the market appears to be balancing out, and even interest rates, which spiked two or three weeks ago, are coming down.
Everetts also thinks buyers don’t need that much money to close.
“They don’t need that extra $25,000, $50,000 in cash if they can accept the fact that the payment isn’t as pretty as it could have been with an interest rate of 3%,” Everetts said. “I sincerely believe buyers are in a better position today than they were in February.”
Metro Denver is now one of the most ‘vulnerable’ housing markets, according to a study by a brokerage firm
Redfin sees metro Denver as vulnerable because some homeowners who bought when prices were out of this world may have high debt relative to their income level and home equity as prices fall back on Land, which could force owners to seize or sell at a loss.
Denver ranked 34th out of 98 metros surveyed with a score of 53.8, while Colorado Springs was close behind with a score of 53.7.
One of the risk factors studied was the number of homes on the market that had price reductions. Metro Denver had twice as many homes with price drops compared to the same time in 2021.
But both Abbey and Everetts say the sky is not falling and owners need to stay calm.
“In two or three years they will be fine,” Abbey said of those who have purchased in the past two years. “They are not upside down. Very few people are in a really terrible position because we are still a growing market. »
“It’s definitely still a seller’s market,” Everetts said. “Buyers don’t have a choice, but there are a lot more opportunities for buyers right now than we’ve seen in the past two years by far.”
Morse sells his old house and buys a new one. She feels like it’s the right time to do both.
“I feel good with the current market situation,” Morse said.