Last month I discussed how the seasons can affect the local real estate market. Ironically, the newsletter was titled “Winter’s End” and it was emailed on the day of the Bomb Cyclone snowstorm! You can never predict Mother Nature. So, whereas it’s impossible to predict day-to-day behavior of the weather or the real estate market it is wise to look at past historic trends to predict what we should expect in upcoming months.
Here on the Front Range of Colorado, looking back at the past 3 years, the peak average sales price has been between April and June. Given that the sales contract typically begins 30-60 days prior to the final sale date, homes listed between March and May are likely to see the highest sales prices. So, March – May historically can be the best months for a seller to gain the best profit. Should a buyer be weary of buying during these peak months? Not necessarily. Although there are more multiple offer situations and prices tend to be higher, the price difference between these months and waiting till later in the year may not matter as much as finding the right home that you want to live in for the next 10+ years (average time a homeowner lives in a home). https://www.valuepenguin.com/how-long-homeowners-stay-in-their-homes
The amount of homes for sale, real estate inventory, has peaked in the months of August – October the past few years. These are the months that a seller needs to be extremely competitive in their pricing and marketing. Buyers during these months gain a bit more opportunity to negotiate price and terms but not too much. Even though there has been more inventory available, it’s still low compared to historical norms.
Another factor that affects real estate trends are mortgage interest rates. Many economic forecasters had previously been watching the Fed raise rates and many anticipated mortgage rates to creep up into the 5% range. Just last month, however, the Fed announced that they would not be adjusting interest rates again in 2019, and if they stay true to their word, not till 2021. This had an immediate impact on mortgage rates and now many buyers are likely to enjoy 30 year rates staying in the 4% range (Source: https://www.bankrate.com/mortgages/analysis/). As buyers look to lock and secure these great rates this will impact the inventory of available homes. Check with my local 8z Mortgage lender, listed to the right, to see what rates are currently and how you can take advantage of the best rate and terms for your purchase.
Whether you’re selling or buying there are some great months ahead to maximize the 2019 real estate market. Give me a call or send me an email – I welcome the opportunity to help you with your real estate needs in the upcoming months.
A Refreshing Look at the Question “What is my House Worth?”
Let’s take a look at some of the stats for our area to get a better idea of what is going on in the local housing market!
In El Paso County for March 2019, the average sales price* was:
- $315,000 for Single Family Homes (up 5.0% from 1 year ago)
- $220,000 for Condos/Townhomes (up 5.5% from 1 year ago)
I have access to detailed stats across Colorado and can help you find out the worth of your property any time. I can also help you determine what your home is worth even if it’s in a different area. As always, I am here for you. If it’s time for you to buy or sell, let’s talk.
*Median sales price based on a six-month moving average