Monthly Mortgage Market Trends

January 2019

January Mortgage Trends Insight
image

NICOLE RUETH

Producing Branch Manager

Going into the new year, just about everyone understands that real estate market is slowing down. The 2nd half of the year brought waning annual price spikes, more properties hitting the market, and fewer buyers to compete with. Everyone has to be wondering what that means for 2019. 

1 year ago the Denver market desperately needed two things… more inventory and prices to slow down. In December 2017 we had hit a record low of a 3854 homes for sale, both detached and attached. For the last 30 years, our December inventory averages 13,403 units, 4 times December 2017s number. Thru June 2018 our YTD median home increased in value 10.29%; great for home owners.

Then the market started to shift. June saw increases in inventory, days on market and months of inventory, all good news for buyers. Yet buyer activity slowed considerably as affordability and rising interest rates were taking their toll. Market volatility started to dominate conversations when the Central Bank stopped buying mortgage back securities in the US and slowed down in Europe in October.    

But this is not a time of doom and gloom but only reflection as we head into what everyone believes will be another hot spring market, taking off as early as February.  Move up buyers have incredible opportunity to cash in on their equity rich positions to pay off credit card debt, student loans and car loans and still make the move to purchase a new home. Entry level buyers also have hope as appreciation starts to return to Denver Metro’s 30 year average of 6% and a reprieve from mortgage rates peak in November.  

Low supply of inventory will continue drive our market in 2019 and push prices up as we remain a hot destination. Add to this the pure math of demographics… the largest swell of millennials turns 29 this year (peak homebuying age). Buyer demand is expected to return as both inventory, appreciation and rates return to normal. In fact, the National Association of Realtors’ Realtor.com predicts the Denver metro area market will stabilize in 2019; forecasting inventory to increase 7%, prices going up 6.8 percent, and rates ending at 5.5% .

I for one am looking forward to 2019 where we focus not on in-affordability and housing bubbles but long-term investment strategies and equity growth. 

Nicole Rueth with The Rueth Team of Fairway Mortgage.

Watch Current Insight Video

Why The Rueth Team?

The Rueth Team is dedicated to our clients success. It is this driving mission that keeps our team constantly learning and pushing beyond our boundaries. We find the solutions other lenders simply can’t (or won’t). We make a commitment to each borrower, fulfilling it with hard work, constant communication and creative problem solving. When a referral partner gives our name, they are confident knowing they are giving their clients the best chance of a smooth, successful experience.

Learn More
 
agent

DENVER METRO’S #1 REALTOR LUNCH AND LEARN SERIES

Sponsored by the Nicole Rueth Team

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.

ARE YOU AN AGENT INTERESTED IN CONTINUING YOUR EDUCATION? RESERVE YOUR SEAT TODAY!

Contact Info

303-214-6393
nrueth@fairwaymc.com   750 W Hampden Ave Suite 500 Englewood, Colorado 80110, United States

 

Have A Question?