· Mortgage Rates1 – Another week of mixed data highlighted by the Congressional Budget Office increasing its forecast for the fiscal 2024 budget deficit from $1.6T to almost $2.0T (that is ‘T’ for Trillion). Sprinkle in modestly positive retail sales numbers with the mid-week Juneteenth holiday and mortgage rates remained flat for the third week in a row at 6.875% (6.904% APR).
· Weekly Market Data2 – Seems like only yesterday that we were talking about the number of active listings breaking through the 7,000 level, and here we are today at 9,500 – up 18% in the last month. Sellers are still bringing homes to market as evidenced by the number of new listings (1,410), but another modest week for buyers going under contract (1,014) and inventory rose by a net 256 properties. Median Days on Market held steady at 11 days. (Source REColorado, all DMAR counties, this past week – Thursday to Wednesday).
· Columbine Team Insight – We saw another week of sellers accommodating our buyers, with 88% of offers being accepted at an average of 2% below the current listing price. Of course, that doesn’t account for any previously announced price reductions, which are becoming more and more common as sellers (and their agents) revisit pricing strategies as we enter into the heart of the summer and buyer activity slows.
· Market Trends – The summer solstice on June 20th marked the longest day of the year and the official beginning of summer (from an astronomical perspective). As you are taking in that much needed vitamin D, it is a great time for buyers to focus on their house hunting strategy. Inventory is up, buyer activity is down, and rates have taken a turn in the right direction. With 57% of homes on the market for more than 30 days, there is an opportunity to start negotiating with sellers again. Remember that while it may seem attractive to offer a lower purchase price, buyers might get more mileage from an equivalent seller concession – allowing them to cover out of pocket closing costs and prepaid items (as well as those temporary rate buy down programs).
NOTES:
(1) The mortgage loan scenario presented assumes the purchase of a primary residence, excellent credit, an 80% loan-to-value (LTV), a loan amount of $480,000, a 30-year fixed interest rate of 6.875%, and a P&I payment of $3,153. The Annual Percentage Rate (APR) is 6.904%, which reflects a discount fee of 0.059% ($283). Monthly principal and interest payments, which will continue for the stated term until paid in full, do not include mortgage insurance, property taxes or homeowners’ insurance premiums and actual monthly payments may be higher. Interest rates are current as of 06/20/2024 and are subject to change at any time without notice. All loans are subject to credit approval. Other terms and conditions may apply. Not all loans or products are available in all states. Regulated by the Colorado Department of Regulatory Agencies, Division of Real Estate.
(2) Source: REColorado®, Inc for the period 06/13/2024 to 06/19/2024. Data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park counties. This representation is based in whole or in part on content supplied by REColorado®, Inc. and REColorado®, Inc. does not guarantee nor is it in any way responsible for its accuracy. Content maintained by REColorado®, Inc. may not reflect all real estate activity in the market.
Recent Comments