I’ve been getting these monthly reports from Kelly Tierney with PorchLight Real Estate Group for years now, and I must say they are fantastic. They are great for understanding what’s going on in the market place for both buyers and sellers.
I mainly focus on the months of inventory section (DSF Inventory and ASF Inventory), which indicates how long it would take for all the existing homes/inventory to sell off, assuming no new listings came on the market. In order for us to be in what’s considered a “balanced market” (not a sellers market or buyers market), we need to be at 6 months of inventory. I can’t tell you the last time I saw us be more than 1 month of inventory. This indicates that it’s still very much considered to be a “sellers market”.
Even though we’re still in a sellers market, it’s a great time to buy, and here’s why: Look at the Year-Over-Year average sold price for Detached Single Family (DSF) and Attached Single Family (ASF) homes. 11.2% and 16.5% respectively. If I were a buyer, I would much rather buy in an appreciating market (like the one we’re seeing now), as opposed to a “buyers market”. When buying in a “buyers market”, this means that inventory is increasing (supply is outpacing demand), meaning that home prices would be decreasing as opposed to gaining 11.2%/16.5% YOY appreciation. Buying during a sellers market is a great way to realize an immediate gain on your home purchase. If you finally buy when the market tops out and is becoming a buyers market, it means that we’re at the peak of home price appreciation, and home prices will plateau or start to descend after that.
Even though this is a great time to be a seller, it’s also very much a great time to be a buyer and capitalize on future gains. Why would anyone want to buy when home prices are decreasing (aka buyers market)?
If you’re not sure what you can qualify for, or if you need ideas on how to maximize/increase your qualifying ability, give us a call at 720-593-NOVA (6682) or visit us at www.coloradoloanofficer.com to #getyourloanon
Seth Wilcock | VP/Branch Leader – Producing
Wilcock Team – NOVA® Home Loans
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