The statistics speak for themselves. Right now there are 31% fewer homes for sale on the Denver MLS than there were at this time last year. In the non-foothills portion of Jefferson County, the inventory of homes for sale is down 39% from a year ago.
Despite fewer homes to choose from, the number of homes under contract is up by 13% from last year. Thus, the percentage of inventory that is under contract is 27.5% vs. 18.8% a year ago. In Jeffco, that percentage is even higher.
The bottom line message could not be clearer. If you are thinking of selling your home, there is no better time than now to put it on the market. We need inventory!
Buyers are buying right now, and for a very good reason. The interest rates are at record lows. Look at these rates offered by a lender with whom I do business: 30-Yr Fixed—3.75% (Jumbo* 3.875%) 15-Yr Fixed—3.0% (Jumbo—3.125%) 5/1 ARM—2.125% (Jumbo—same rate) FHA 30-Yr Fixed—3.75% (no points)
The above rates all include one point, except for FHA. If you want to pay no points on the non-FHA loans, the rate is 0.25% to 0.375% higher.
As a guide, each 1% change in rate on a $250,000 loan saves or costs the borrower about $50,000 in interest over a 30-year term.
Not only should sellers consider putting their home on the market at this time, but buyers should get off the fence and buy before rates go up. Remember, you can buy a home with as little as $1,000 down in Colorado, thanks to the Colorado Housing and Finance Authority (CHFA). If you don’t have a good lender, I’d be happy to refer you to one. Call me at 303-525-1851.
*A “jumbo” loan is a loan over the conventional loan limit of $417,000.