The 2021 Real Estate market offers opportunities for both the buyer and seller of residential homes. It offers those presently working from home a chance to move to another state, another town, a mountain retreat. And there are perks galore for those who have jumped onto the bandwagon. Perks extend to first home buyers, families downsizing and millennials investing for their future.
If you are ready to buy, all time low mortgage interest rates boost your purchasing power big time. The purchase of a home increases your net worth and becomes a safety net for the future of your family. Right now a 30 year fixed rate is about 3% giving leverage for buyers hoping to invest in their dream.
Published today on Bankrate, Colorado current rate projections are as of Friday, April 9, 2021, current rates in Colorado are 3.17% for a 30-year fixed, 2.41% for a 15-year fixed, and 3.04% for a 5/1 adjustable-rate mortgage (ARM). These numbers are a compelling incentive for buyers. The Colorado Housing and Financing Authority (CHFA) offers loans and down payment and/or closing cost assistance for qualifying first-time homebuyers.
*CHFA’s home purchase loans are available through partnering lenders and offer affordable rates, low (or no) mortgage insurance, closing cost support and free homebuyer education classes. To qualify, buyers must have an income that falls within CHFA guidelines, a mid-credit score minimum of 620, a maximum debt-to-income ratio of 50 percent and limited savings for a down payment or closing costs. CFHA’s down payment assistance grant can cover up to 3 percent of the amount of a 30-year CHFA mortgage. (The money can also be used to cover closing costs.) The grant does not have to be repaid. This according to American Financing. “Every year, bright-eyed new residents flock to Colorado to take advantage of the outdoor lifestyle, cost of living, and participate in a growing economy. Colorado is such a desirable place to live that U.S. News and World Report recently ranked Boulder and Denver as the best and second Best Places to Live.”
Low mortgage rates are a plus for buyers for now, but as the year progresses experts forecast them to continue to rise. This is to note that if you’re ready to purchase a home, it’s wise to get started on the process quickly so you can secure today’s comparatively low rate.
“Positive factors like record-low interest rates and a booming housing market encouraged many families to enter homeownership. This growing bank of personal wealth that homeownership affords was noticed by many but in particular for first-time buyers who want a piece of the cake. As a result, we may see more of those currently renting start to enter the market in the near future.” –Frank Martell President and CEO of CoreLogic.
OK, so where is the seller? Right now, they have the advantage of low inventory. More buyers are scouring the market as many currently renting are beginning to enter the market. The result is there are simply not enough houses for those with hopes of finding their dream home.
There are simply not enough houses on the market for the number of buyers looking to purchase them, and it’s creating a serious sellers’ market. According to Danielle Hale, Chief Economist at realtor.com: “Total active inventory continues to decline, dropping 50 percent. With buyers active in the market and sellers still slow to put homes up for sale, homes are selling quickly and the total number actively available for sale at any point in time continues to decline.”
Information included in the latest Realtors Confidence Index Survey by the National Association of Realtors (NAR), the average house is now receiving 4.1 offers and is on the market for only 20 days.
With little supply in the market, homes typically sold within 20 days (36 days one year ago), stand at a record low since May 2011. This showing that buyers are eager to purchase and because of the housing shortage they are in bidding wars with other interested parties. This is the factor that keeps home prices strong and offers leverage to sellers during the negotiation process.
End of The line
If you are thinking about or in position to sell, don’t wait to make a move with such favorable conditions. Low inventory and high buyer demand, means that homeowners can potentially earn a greater profit on their houses, selling them quickly in the fast-paced market. With such major perk opportunities it is important you contact your trusted realtor at Katchen Company to discuss how these nationwide favorable conditions will play to your advantage in the Denver area. They understand that buying a home is one of the biggest investments a family can make.
When you are in the market for a new home most people seek a real estate agent who is market savvy, someone you like and trust and may possibly end up being friends with. Home buyers desire an agent who will go the extra mile to get the best results, even when the going gets tough. The experts at Katchen Company are respected team players who will complement both the buying and selling experience.