Here in Colorado, we know all about housing craziness. But last year, we could not have imagined the craziness of this time in history. In fact, not even a little pandemic can put a dent in our booming housing market.
Not to say that there weren’t concerns. Just a couple of months ago, there were fears that the temporary closures of businesses combined with layoffs and furloughs would darken the housing market. But, surprisingly, that has not only not come to pass but the market is now hotter than ever before.
Historically Low Interest Rates
That demand has been partly driven by historically low mortgage interest rates. Mid-July, fixed-rate mortgages dropped to their lowest in recorded history and have continued to drop even further. Compare that with last year when rates were a full percentage point higher
Buyers Taking the Leap
These rates have propelled homebuyers who were watching and waiting to finally take the leap. They have also provided investors a springboard to get back in the game. The result: incredibly low inventory with soaring prices. But buyers see those lower rates offsetting the higher costs.
Shortage of Inventory
A shortage of single-family homes has propelled bidding wars, particularly for those more affordable homes priced around $300,000. According to the Pikes Peak Association of Realtors, the average price of homes in June hit a record high of $401,980, the first time it had ever exceeded $400,000. Even the more expensive price points are seeing incredible demand.
Beware the Bidding War
Consequently, many buyers find themselves offering thousands above asking price just to keep in the game. Some find that they are just priced out. Conversely, sellers are left with multiple offers to choose from, not a bad situation from a seller’s perspective.
Brian Murphy, President of Front Range Mortgage shared, “New home construction has jumped up over last year to fill that need for housing in Colorado Springs, Denver Metro and along the Front Range. In fact, the home building industry has jumped back to pre-pandemic levels, according to the National Association of Home Builders.”
Colorado Becomes More Appealing Than Ever
Some feel that the pandemic itself has made Colorado more appealing. Our mountains, big open spaces, and outdoor lifestyle beckon to those who may be suffering lockdowns in cities. Here in Colorado Springs, we also are seeing buyers coming from the downtown Denver area in search of more affordable housing. Despite our prices, they are still comparatively affordable to Denver’s.
Buying or Refinancing a Home with Front Range Mortgage
If you are in the market for a home or considering a refinance in Colorado, the current low rates should entice you. At Front Range Mortgage, we will be glad to pre-qualify you and lock in a rate so you can shop with confidence.
We are licensed Colorado mortgage brokers serving Denver Metro, Colorado Springs, Grand Junction, the Western Slope and throughout the entire state. Call us in Denver at (303) 500-1900 or (719) 540-2020 in Colorado Springs to speak to one of our loan specialists.