The spring selling season is in full swing. Despite increased interest rates, buyer showings also picked up in recent weeks. Homes priced correctly for the current market are receiving multiple offers, with listings priced under $600K or over $1 million seeing the most competition. However, in contrast to the post-pandemic sales frenzy we saw in the last two years, contingent offers are now more common and buyers have slightly more breathing room while submitting offers.
The mortgage rate for a 30-year conventional loan increased from 5.99% to 6.94% through the month of February and has now peaked above 7% as we head into March. As a result, the number of mortgage applications submitted (nationally) in February dropped by 25%. Many buyers are standing by, waiting for the next dip before locking in a rate. A number of buyers are also standing idle in the hopes that more inventory will come online. This is to be expected, as active listing numbers are down market-wide. Despite our active listings increasing 208% over last year, we saw only 3,778 active listings in the month of February. The Denver metro historical average is closer to 13,000 active listings for February. We expect the market to continue to stabilize throughout 2023 as the FED works to fight consumer spending and inflation. Now is a great time to buy if you are waiting in the wings. Let’s talk!