Inventory, Interest rates and appreciation are the real estate hot topics this month. As a member of DMARs Market Trends Committee, I want to highlight some of the data I am seeing and how it can help you lean into your buyers and sellers. Right now buyers and sellers are operating out of fear. They are hearing that the market is softening, that interest rates are going up, that demand is down. They are immobilized in a time when they should be taking action. Right now continues to be an incredible time to both buy and sell.
Let’s look at some of the data. What we are seeing this October is a track back to normal seasonality. This is a welcome change. After years of a lack of inventory and artificially held low interest rates, most first time homebuyers were kept out of the market due to the lack of homes and being out bid. Now inventory is up from bottoming out in December at 3854 homes for sale (attached and detached). Supply and demand play a critical role in the health of the market. December’s all time inventory low stressed the Denver market and was unsustainable. Since then we have seen inventory come back up to 8539 homes for sale in October. This is a 35% year over year gain and a more than doubling since December.
Another great sign is Under Contracts is up over 5% showing buyer interest. Demand can also be measured by mortgage purchase applications remaining par year over year in a rising interest rate market. Rates ticked in at .93% higher than a year ago stressing affordability and all experts agree, rates are going up. The amount is still in question with some quoting 5.2% next year and others 5.5% in 2019 and as high as 6.5% in 2020. But let’s put this in perspective compared to the historical average 30 year fixed mortgage interest rate of 8.16%*. So today’s rate of 4.83% still provides buyers a phenomenal opportunity. Also worth noting, as interest rates rise, a median priced home only goes up $25 for each 1/8th in rate.
Lastly, let’s look at appreciation, year to date appreciation is strong at 8.47% primarily due to the 1st Quarter number. October saw a seasonal drop in appreciation coming in at 5.26%. A homeowner continues to gain incredible wealth with the ability to leverage. Consider a 5% appreciation on a home worth $400,000 when you only need to put 3-5% down? Real estate gives you an incredible path to build wealth.. even at more normalized appreciation levels. Let us remember… a normal appreciation is 3.6%.
*since they were tracked in 1972Watch Current Insight Video
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NO OBLIGATION TRAINING: Market Mastery & “Done for You” Marketing tools delivered every 3rd Thursday (occasionally Tues) of the Month so you MAKE MORE MONEY! Nicole Rueth with Fairway Independent Mortgage Corporation, together w/ guest speakers from a range of professional disciplines, will be presenting monthly updates on industry statistics and market news you can use to help educate and motivate your buyers and sellers. Walk away with talking points, slides & information to set yourself up as an industry expert.
Alison P. from Wheat Ridge, CO
Nicole was wonderful to work with! The experience was so much better and more personal than working with a large company where you might not have contact with the same person throughout the process. Nicole was extremely communicative, easy to reach and talk to, and went out of her way to make this the most positive experience for my family. She worked so hard to meet our tight deadlines and made the entire experience smooth and stress free. I would 100% recommend working with Nicole and the Rueth Team!
stacieandtomwedding from Denver, CO
Nicole and her team were responsive, professional, and supportive as they walked us through every step of the loan process. We highly recommend the Rueth Team and will reach out to them with any future needs!
Natalie W. from Idaho Springs, CO
We’ve used The Rueth team twice now and have had a seamless experience both times. She and her team are knowledgeable, friendly and helpful. When I contact them they are very quick to respond. I would continue to work with The Rueth team in the future!
Shelby from Denver, CO
I used Fairway and Rueth’s team when purchasing a home recently and they were outstanding throughout the entire process. One of the staff on the team was even out on leave for most of the process and you wouldn’t have even noticed. Everyone I worked with provided very friendly, personable and knowledgeable service. I knew what my options were and everything was done in a very timely fashion. They even were able to find me some closing clost assistance so that I was able to have some money in my pocket left at close to do some work on the house. This was the third home I’ve bought and Rueth’s team was by far the best mortgage company I’ve worked with and I would recommend them with my full confidence.
Andrew C. from Wheat Ridge, CO
Nicole was fantastic to work with. She's responsive, knowledgeable, and able to make last minute changes when necessary. Working with her was a nice change from big-box mortgage companies. When last minute things needed to be fixed she did them promptly, and made sure we made it to closing without a hitch!
Mr. and Mrs. Walls from Idaho Springs, CO
We were impressed with the professional, personable service we received from Nicole and would recommend her to other home buyers. She helped us get pre-qualified quickly, making our search more productive.
Kathleen Cain from Palmer Lake, CO
Excellent team! Would highly recommend! If I ever have to do this again I would call Nicole Rueth! Her response to any of my questions was answered immediately and with great accuracy! Couldn't have been any better!
Paige M from Morrison, CO
Nicole and her team did an amazing job not only in keeping me informed of all the processes that go into selling and buying a home, but they were professional and knowledgeable! They answered all my questions, and made it easy to understand! I will never use anyone else!
april3lynz from Colorado Springs, CO
Absolutely AMAZING group! I had a really rocky start with my home buying experience. I had a horrible realtor and I was going to go through a different lender. I dropped my horrible agent and found an amazing realtor who was just phenomenal, and she referred me to The Rueth Team. My experience with them was quick, painless and simply amazing. I had very little stress and their team was so helpful. I had a moment of panic and I called, they were able to explain everything to me without confusing me more and went over every detail of my process moving forward with me. They had no hidden fees and were straight up and up front with me the whole way. I'm extremely grateful to them. In less than a month I am moving into my new home!!
Jeff D. from Denver, CO
I've closed two mortgages prior to this one with The Rueth Team, and this was by far the smoothest lending process I've had. Nicole, Peter, Emily, and Robbin were terrific communicators, provided me with honest feedback, and were simply easy to work with. They're true professionals and I'd happily work with then again on my next loan.