Barry Kunselman | 303.887.0588 | Contact Us
Happy New Year! Hope everybody had a wonderful holiday. According to data released by Recolorado, Denver's Multiple Listing Service, 2016 Denver Front range housing sales is highest on record. Last year broke record highs and lows. In July, we hit an all-time high for the average sold price of a home at $420,178 and median sold price at $365.000. February brought us a record low for month -end inventory of 3.963. Compare that to our all-time high of 31.989 in July of 2006. The 2016 housing market was driven by historically low inventories, high demand and affordability concerns for many buyers.
What will the Denver Metro Real Estate Market Look like in 2017?
How much will housing prices rise in 2017?
We are expecting another great year for Metro Denver real estate. U.S. News and World Report named Denver the best place to live and Zillow ranking the Denver market #9 for next year with 3.6% home value appreciation. Possibly expect Denver home prices to rise by up to 8-9% because we still have high buyer demand and low inventory.
“Looking to 2017, the Denver area market is showing signs of prices starting to moderate and inventory levels improving.” - Kirby Slunaker, REcolorado.
CoreLogic, a leading provider of consumer, financial and property information, predicts that the recent rise in mortgage rates and the expectation of higher rates in 2017 could slow home price gains in 2017.
Will there be new Denver condos in 2017?
There is a chance the Colorado builder defect law will change making it more appealing for builders to build affordable condos. Right now the law that was put into place makes it difficult because of high insurance rates and the liability put on the builder. Both Colorado Democrats and Republicans will work together this year to fix this law making it easier for builders to build condos and still protect the consumer from builder defects. This would increase the amount of affordable housing, making it easier to live in and around out growing city.
Advice to Homebuyers
What I have noticed over the last 3 years is that from February to around July prices generally increase every week. Demand increases every week until we get to April. The longer you wait, the more you are going to pay and the more complications you'll have.
"[I see] mortgage rates getting much closer to 5 percent at the end of next year.” - Mark Fleming, the Chief Economist at First American
Mortgage rates are rising but still at relatively low vs historical averages and is expected to remain under 4.5% for a 30-year fixed rate.
The Department of Housing and Urban Development (HUD) announced Monday a cut in FHA mortgage insurance annual premiums. This is great news to FHA homebuyers closing on their new home on or after the 27th of January since rising mortage interest rates have made it more expensive to buy home. The Department of Housing and Urban Development (HUD) has lowered annual premiums by 25 basis points which could save the average buyer who gets a 30-year fixed-rate $200,000 mortgage about $500 a year in payments.
If you are thinking of purchasing a home under $400k , I would highly recommend getting on the market sooner than later.
Advice to Homesellers
With rising home prices, more homeowners are recovering from negative equity and find that they are able to sell their home. When you are moving up, selling your current home then buying a larger home, you might want to wait until early April when demand is extremely high. You can find a buyer who is willing to let you look 2-3 months for your replacement home, giving you time to get everything together and not rush in the process.
If you are thinking of buying or selling a home in Denver Metro, give me a call at 303.887.0588 or email firstname.lastname@example.org