As colder winds have begun to blow down from the Front Range foothills, some even treating us to small flakes of unique shapes, we have proof that summer is good and truly over. With it, the real estate market moves swiftly into the last quarter of the year. Taking a quick look backward can set our sights on the most likely direction going forward.
For those with property to sell, the slimmer than slim inventory continues to offer substantial equity gains and speedy sale times. Particularly when the price is valued per the current market and the property is in good sale condition. Many took advantage of these conditions, giving the Colorado front range marketplace 7076 homes available to choose from in September.
Mortgage interest rates, rising only slightly in the preceding 30 days, fueled affordability which inspired 6440 to choose and close on a new home during the same time in the front range. The tide of ready, willing, and able buyers has not abated, so the fast turnaround time averaging 22 Days on Market should surprise no one.
The numbers from the National Association of REALTORS® are showing that the summer market slow down has not slowed the speed at which homes are selling. NAR’s chief economist Lawrence Yun is convinced that sales would be at much higher levels if only there was inventory available to satisfy the buyer demand. This is a refrain we’ve been singing for quite some time.
One positive to encourage prospective home buyers is the pace of new construction. New home construction is up almost 18% year-over-year, and permits for further new builds have increased over 6% month-over-month. More homes to choose from will increase choice overall, help balance sale prices, as well as lower stress levels for potential buyers.
Speaking of affordability, talk of high-climbing price trends may cease when inventory levels return to a more balanced situation. Currently, we saw an average sales price of $637,299 in the September Colorado front range market. Still a jump up from last September's average of $538,246, but as we see a return to what is considered “normal” activity, we may see the real estate market making similar adjustments.
Adjustments are on the menu with most mortgage lenders too. Most expect a somewhat calmer market pace than what was experienced through the spring and summer. Rates have been in a state of flux for about 60 days, with credit availability increasing from August through September close to 4%. That increase means more buyers have found it easier to obtain a mortgage loan and the expectation is that will continue through the end of 2021.
All current trends indicate a strong, healthy real estate market throughout Colorado.