Rising interest rates continue to have an impact on the local real estate market leaving buyers and sellers asking questions like, will my house still sell in this market and, what can I do to help fight rising interest rates when buying a home?
If recent headlines about the housing market cooling and buyer demand moderating have you worried you’ve missed your chance to sell, here’s what you need to know. Buyer demand hasn’t disappeared, it’s just eased from the peak intensity we saw over the past two years. During the pandemic, mortgage rates hit record lows, and that spurred a significant rise in buyer demand. This year, as rates increased due to factors like rising inflation, buyer demand pulled back or softened as a result. While things have cooled a bit, it’s still a sellers’ market. If you price your house at the current market value, the demand is still there, and it should sell quickly in the Broomfield real estate market.
With that in mind, let’s take a close look at the latest statistics in the Broomfield Real Estate market.
The number of active listings has decreased slightly for both single family homes as well as condos and townhomes since the beginning of the school year which typically signals the end of the summer buying season. However, active listings are up significantly compared to last year, particularly when looking at single family homes. This is likely due to rising interest rates leading to an increase in days on market.
Broomfield Home Sales
While active listings have decreased slightly over the past month, total sales have grown as buyers become accustomed to the changing dynamic of the local market. In August, total sales of single family homes increased nearly 16 percent while there were three times as many sales of condos and townhomes during the same period. Total sales are still down compared to the insane market last summer, but it’s good news for the market as a whole to see that homes continue to sell.
Broomfield Pending Sales
Another indication that the market is in a relatively good position is that pending sales are also up slightly since last month. In August, 95 single family homes were under contract, a 17 percent increase over last month. Condos and townhomes remained steady with 24 properties under contract each month.
Broomfield Average Sales Price
Broomfield home prices have skyrocketed over the past couple of years, but the double-digit appreciation rates we have seen during that time period won’t continue any further. Single family homes had an average sales price of nearly $744,000 in August. This is a 2.65 percent increase over the past year, which falls more in line with historic appreciation rates of 3-5 percent. Condos and townhomes are a different story, with their average sales price increasing over 17 percent. As prices increased for single family homes, buyers turned to a more affordable option which has led to this increase in condos and townhomes over the past year.
Broomfield Homes Days on Market
There’s one big adjustment that Seller’s are having to make in the real estate market today; and that’s expectations on how quickly their home will be under contract. Over the past year, the time it takes for a single family home to go under contract has doubled from 5 to 10 and more than tripled for condos and townhomes from 4 days to 13. As the market continues to adjust to the new norm of increased interest rates and more homes on the market this number could continue to increase slightly over the coming months.
How Can I Improve My Interest Rate?
Rising interest rates have forced many buyers to reconsider their options while Broomfield home prices remain at record-highs. For some this means they simply can’y afford a home they may have been able to a few months ago. However, this doesn’t mean they have to give up on their home search altogether.
Here are two options:
First is a permanent rate buy-down, commonly referred to as buying points. In this situation the buyer, seller, or combination of both pays to lower the interest rate for the life of the loan. This upfront investment can have a great long term impact on a buyers monthly payment.
Second is a 2/1 rate buy-down. This is a short-term 2-year buy-down. In the first year, the interest rate is reduced by 2% and 1% in the second year. After the 2-year period, the interest rate remains the same for the remainder of the loan.
The cost for either of these options varies so it’s important to speak with your lender to find out if either is good for you.
Helping You Make Informed Decisions Regarding Broomfield Real Estate
I produce this monthly update to provide you with a high level overview by looking at the patterns and trends.
I hope to help you make sense of the numbers so you can make informed decision. It is my hope that this report helps you to ”See the Big Picture and All the Details!”
If you see a segment of the market that you would like additional help with understanding please contact me. Or if you desire a specific Property Valuation Report that I routinely prepare for my clients, please contact me.
This report covers Broomfield Single Family Homes and Broomfield Luxury Homes.
How can I help you with your Broomfield, CO Real Estate Needs?
This Broomfield Real Estate Market Report and the level of detail is representative of what you can expect from me as your Real Estate Agent.
I am a Colorado native and Broomfield resident with years of local knowledge and insight to help meet your needs, and I strive to exceed client expectations.
You May Be Wondering… What is My Home Worth?
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Visit www.NorthStarCompass.net. Phone: 720.351.8488 or John.Grandt@Compass.com
For questions regarding this Broomfield Real Estate Market Report or the Broomfield Real Estate Market in general contact:
Realtor® | Real Estate Negotiation Specialist
North Star Team at Compass