Happy Fall! I hope you are enjoying my favorite time of year in Colorado.
In mid-September, the Federal Reserve (the Fed) cut interest rates. It had been 1,650 days since the Fed last cut rates.
During the era of rising rates, we saw:
So, when we got the news that the Fed cut interest rates by 0.5%, I was elated. Not because this single cut will dramatically change the market overnight — but because the Fed is signaling that this is the beginning, not the end, of rate cuts.
Yes, lower mortgage rates will result in more buyers, increased competition, and likely more refinancing, but here’s my biggest takeaway today: I am loving current market conditions.
At the end of September, the Denver metro market had more than 11,000 homes for sale. It’s the first time we have had so many homes for sale since 2011! Buyers finally have options and bidding wars are few and far between.
You might be asking yourself, how big of a deal are lower rates and more inventory? I will put it into perspective:
Here’s how the payments would break down based on your interest rate:
So, when you compare 8% (which we saw in November of 2023) to today’s rate of 6.2%, that’s a $7,278 difference in payments per year.
There’s no question that affordability remains an issue, but I’m glad to see interest rates come down because every drop equals lower payments for my clients.
Lauryn Dempsey in The Wall Street Journal!
Just before the rates dropped, I spoke with The Wall Street Journal about the market and what to expect. You can read the article here.
My thoughts? Once we are past the election, I wouldn’t be surprised to see a boost in market activity. In my conversation with clients recently, I have noticed a little more of a “wait and see” perspective. I think the election, plus jobs uncertainty and rates being so close to 5% have caused some to pause.
I totally get that perspective. I will just share that now through the Super Bowl Weekend are prime time for buyers to get into the market and negotiate great deals. Once we get into the prime spring selling season, buyers come back and prices rise.
On the Blog
Why Moving Up Your Buying Timeline Can Save You Thousands
How to Navigate Denver’s Luxury Market
Maximize Curb Appeal Your Spring Home Sale: Take Exterior Photos Now!
Want to Save on Home Insurance? Check Your Roof
Why First-Time Home Buyers Need More than Just Online Research
If you are looking for daily insight and real-time tips on the market, follow me on LinkedIn. If I can help you strategize your next steps in real estate in the Denver metro or elsewhere across the U.S., please reply to this email or book a call with me!