Real Estate is always local and about location, location, location. The state of the national market is about as useful as the average weather temp to decide what to wear outside in Broomfield. We have some unique things in the real estate market here. Low inventory, increasing home price and builders who can’t staff their work sites all make an impact.
Home prices continue to move at a nice appreciation rate. In 2012 the average price jumped +8.5% and 2013 was up another 9%. This was driven by the lack of inventory and we expect this to continue through 2014. No crystal ball stuff here but simply market forces. If inventory remains tight price trend is upwards. This can be that win time for the sellers who want to list their homes.
Interests rates continue to be very low as you look at the historical standards. The 70’s=9%, 80’s=13%, 90’s=8%, 00’s=6.5 and today you can get around 4.5% with a decent credit score. With a 60k income and a 4.5% rate that household can still afford a $275k home. That is the win for the buyers.
Sellers need to be ready to move quickly as they will get many offers to choose from and a darn good price too. In some cases we will get the sellers a 59 day from close rent back to ensure the seller will find that new home. Buyers likewise must offer a strong market price with few conditions asked from the seller.
The next blog will talk strategy for buyers and sellers in this market and under our Broomfield/Denver specific conditions. You can see that it is the win-win time. We can work with you to navigate through whichever side you are coming at Real Estate to achieve your goals.