Interest rates have continued to be a driving force in our market. Economic predictions indicate mortgage rates may decline modestly this year. This would ease the cost of borrowing and generate an increased demand for home sales.
For Buyers - The question many are considering is whether to buy now with rates in the 6.75% range or wait until rates drop a bit. My opinion is that it's best to buy now rather than later for two reasons:
#1 - If interest rates begin to decrease, it will lead to an influx of buyers into the market. The pent up demand will result in increased competition and in turn drive up the prices of available homes. Buying now means more selection, less competition and lower prices. And, there is always the option to refinance if interest rates drop.
#2 - For perspective, interest rates were at about the same rate in 1998 that they are now. If a buyer in 1998 had waited until interest rates dropped to 5.875%, they would have been waiting 5 years for a better interest rate and during that period, home prices increased over 50%. In this example, waiting for a lower interest rate would have been very costly.
For Sellers - Spring is the best time to list their home because buyers have the highest sense of urgency this time of year. Current statistics across Boulder County show that the number of homes on the market is increasing and the number of sales are increasing while prices are either flat or rising slightly. These stats show that the market is active and it's a good time to sell.
Whether you are considering buying or selling, please contact me anytime to discuss how to make the current market work for you.
Happy Spring and All The Best,
Rich