Interest rates are up, and buyer demand is still holding strong. Showings are one of the most significant indicators of buyer demand, and as of early this month, showings for the Denver Metro Area hit 468,002. It is fewer showings than the frenzy of April 2021, which hit 502,836 but still a great turnout with rates rising. Inventory remains low, yet April finished with 200 more homes hitting the market than last April.
A conundrum of factors in our market show that making a move sooner than later is in your best interest. Interest rates rising while inventory is still low indicate that appreciation will still be going up, and affordability will continue to be an element of our market. Therefore, getting into the market should be your goal. Spring activity is strong, and we will begin to see showings slow down after the 4th of July. Although there may be less competition at that time, we don’t know where rates will be and how that will affect your ability to get the home you desire for the payment you want.
Colorado’s robust economy is still bringing well-qualified buyers your way. Historically showings rise during the spring and taper off after the 4th of July. Anticipate seeing shifts in the percentage of homes that experience a price decrease and sell for over the asking price. While appreciation will continue, it will likely be at a slightly slower pace. Properly preparing and pricing your home should still attract the right buyer when you are ready.
If you took advantage of the low interest rates and are watching the market from the comfort of the home you want to stay in for the next few years, you are in a great spot! Most recent estimates say Colorado is approximately 100,000 single family homes behind in the start of new builds over the last 10 years. The trend for single family home permit applications is about 28,000 annually throughout the state, and roughly 85% of those get built each year. If the population continues to climb, even with reduced buyer demand, new building starts may not catch up for decades. This means continued appreciation.