While many potential homebuyers view the winter months as not an ideal time to make a purchase, the forthcoming trends prove that you may want to reconsider.
Interest rates on home mortgages directly impact your monthly payment, so making a home purchase when interest rates are low allows for extra spending (or saving) elsewhere.
While not currently “low,” interest rates are 4.85 percent, and experts believe these rates could increase to 5.85 percent a year from now (according to Inman.com). These rate hikes dramatically affect purchasing power or disposable income.
Typically, the reason for mortgage rates to increase is a strong economy. A strong economy boosts consumer confidence, which in turn also increases consumer spending and the willingness to borrow.
Consumer confidence is based 40 percent on opinions of current conditions and 60 percent on expectations of future conditions. Impressively, as reported by LIV Sotheby’s International Realty, consumer confidence achieved an 18-year high in September 2018, at 137.9 (a 361.2 percent increase from January 2009).
The good news for buyers right now is that home sales are slowing down slightly, allowing for more flexibility when you’re trying to land your dream home. With an interest rate increase around the corner and prices at a fair level, now is an ideal time for buyers.
If you’re interested in selling your home, this doesn’t mean that you need to wait, either. Instead, your focus should be on making sure your home is “show ready,” even with the weather changing.
Buyers may have more flexibility right now with pricing, but not necessarily with inventory. Make sure your home is welcoming, and the right buyer will be comfortable making the investment.
With a continuously changing landscape, now it is more important than ever to consult with a real estate professional about your plans for the future.
To learn more about real estate trends, discuss making a home purchase or to list your home for sale with LIV Sotheby’s International Realty, visit LIVSothebysRealty.com or call 303-893-3200.
LIV Sotheby’s International Realty, the exclusive Board of Regent for the Who’s Who in Luxury Real Estate, has 16 office locations in metro Denver and surrounding areas, including Boulder, Castle Rock, Castle Pines, Cherry Creek, Clayton Street, Denver Tech Center, downtown Denver, Evergreen and the resort communities of Breckenridge and the Vail Valley.
The news and editorial staffs of The Denver Post had no role in this postap preparation.
