The combination of high demand for homes and a lack of inventory nearly always signal a rise in home prices. While many forecasters expect home prices to continue rising this year for Highlands Ranch real estate – contributing to the seller's market in this area – they caution that they won't climb as quickly or as much as they did last year. In an earlier post, we gave you some information about the Denver area seller's market
. And if you are planning to sell your home in 2016, you'll be glad to hear that the National Association of Relators
(NAR) is calling for a 4.4 percent increase in existing home prices this year and 3.4 percent in 2017.
Some experts say that the available inventory of homes rose slightly in the beginning of 2016, but it remains to be seen if that is a trend that continues. So if you are thinking about selling your home anytime soon, the best time is right now – while prices are still high and before we see an upswing in inventory. And if the home you are selling will be priced in the low-to-middle price tier for your market, you can expect it to sell fast and for top dollar.
But what about buying a home this year? According to Freddie Mac's Primary Mortgage Market Survey, 30-year mortgage rates fell in April 2016 to an average of 3.59% across the country, down from 3.65% from April of last year. So the bonus for buyers is low interest rates. More good news for the 2016 homebuyer: Not only are rates lower, the lending guidelines have relaxed somewhat. All this means a lower monthly payment, so that you have more purchasing power, and that additional power can mean the difference between buying a 2-bedroom home versus a 3-bedroom one or between buying an upgraded home versus a dated one.
Because it's a seller's market, there is a lot of competition from other homebuyers. This is why it is more important than ever to take some preliminary steps before making an offer on a property. First, get preapproved and obtain a preapproval letter from your lender; know exactly how much you can spend. Make your offer stand out from the others by keeping contingency time periods as short as possible. Step up with your highest and best offer from the very beginning, because the is market moving too quickly right now to assume the seller will negotiate over price.
Finally, home prices are currently rising twice as quickly as incomes, and it doesn't appear the situation will change in the near future. So if you've been waiting for prices to come down, know that they are not coming down any time soon, so you will want to act quickly.
At Colorado Home Sales
, we are ready to assist you to buy or sell your home. We work aggressively with homebuyers to compete in this competitive sellers market. Whether you are buying, selling or renting, we are your local, go-to, one-stop real estate company. Contact us today at 720-220-2059