Denver Housing Market: February 2023
Worried that the timing may not be ideal to purchase or sell a home in Denver? Allow us to assist you in making informed decisions. Get in touch with us today!
Average Homeowner Locked in Below 4%
Despite the current average mortgage rate of 6.65%, those who already own a home are reaping the benefits of low interest rates, with an average locked-in rate of less than 4% according to the Federal Housing Finance Agency (FHFA). This practicality has made selling and buying new homes far less appealing for homeowners today.
Activity Outlook
New listings are down significantly year-over-year. 3,451 new homes came online for the 3.3 million people who live in the 11-county area, the lowest number of new listings this time of year since 2014 (Nicole Rueth).
3,740 homes found a buyer (went under contract) in February in the Denver Metro area, according to the Denver Association of Realtors’ latest report. Only 2,661 homes sold in February. This is an increase of 22.51 percent from January, but still down -24.87 percent from last year.
Active inventory (the number of homes for sale) is up 208.16 percent from last year, making now a great time for homebuyers to find their next home! But act quickly, inventory is already down -8.3 percent from last month, another indication that this spring market is looking to be busy.
Home Prices Tick Up by 1.29 Percent
- The average home sold for $657,921 in February 2023
- The average single-family home sold for $731,318
- The average attached home sold for $473,995
Interest Rate Outlook
A full twelve months have elapsed since the Federal Reserve initiated its most recent series of rate increases in order to curb inflationary pressures.
If the current positive momentum of employment growth, consumer spending, and inflation remains high, then the Federal Reserve will be required to raise its key interest rate even higher than previously anticipated.
Mortgage rates may have gone up, but they are still lower than our historical average. The Federal Reserve has indicated that it will continue to raise interest rates: Investing in a home today rather than later and refinancing at a later date may turn out to be the most advantageous option for you.
The Bottom Line
Inflation is a long-term problem and investing in a home today can be your most beneficial strategy toward stability. Refinancing at a later date is always an option for you if mortgage rates go down.
At Usaj Realty, we know the constant fluctuations in the housing market have caused many people to feel overwhelmed and apprehensive. From major increases in interest rates to affordability challenges, our clients know that when you work with us, our team provides the necessary education and strategy to navigate this market successfully.
For more than a decade, we have proudly helped thousands of Denver homebuyers and sellers to realize their real estate dreams. And we are ready to help you today to start building financial stability and generational wealth for tomorrow.
Contact one of our exceptional agents today for guidance in the Denver housing market.
