In February, buyers took advantage of the warmer temperatures and snowstorm-free month to house hunt, but sellers continue to hold off on listing their homes. For both detached single family (DSF) and attached single family (ASF) homes, more units were placed under contract than the number of active units available. Other results from the month include:
- The number of units placed under contract increased 14 percent and 19 percent from January for DSF and ASF, respectively.
- Average prices were flat from the previous month and up 6.6 percent year over year for DSF, while prices for ASF jumped up 12.4 percent from the previous month and 5 percent year over year.
- Compared to the previous month, days on market (DOM) dropped 11 percent for DSF but increased 19 percent for ASF.
Another recent development that should be of interest to buyers and sellers is that on March 15, the Federal Reserve increased its short-term interest rate by a quarter percentage point and signaled the potential for two more increases this year. Each quarter percentage point change has a notable impact on purchasing power. For example, a buyer with a monthly budget of $2,148 (interest and principal only), can afford the following:
- At 4 percent interest, a $450,000 home;
- At 4.25 percent interest, a $436,713 home;
- At 4.5 percent interest, a $424,004 home;
- At 4.75 percent interest, a $411,843 home; and
- At 5 percent interest, a $400,201 home.
For sellers, rising interest rates decreases the potential pool of buyers who can afford to purchase their home.
If you need any advice or assistance navigating our real estate market, contact me today at 303.710.5817 or email@example.com. I am never too busy for your referrals.
Based on information from REColorado®, Inc. provided by Land Title for the period of Feb. 1, 2017, through Feb. 28, 2017, for Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert and Jefferson Counties. Note: This representation is based in whole or in part on content supplied by REColorado®, Inc. REColorado®, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by REColorado®, Inc. may not reflect all real estate activity in the market.