Episode Transcript
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Speaker 1 (00:00):
It is Colorado's Morning News. Recent housing data for Colorado
and the metro area showing us softening summer market as
buyer demands slows.
Speaker 2 (00:07):
HI mortgage rates largely being blamed for keeping buyers out
of the market, as housing inventory is also climbing up.
Joining us now on the KWA Common Spirit Health Hotline
to talk more about it. From the Colorado Realtors Association,
It's Cooper. Theare Cooper, thank you so much for your
time this morning.
Speaker 3 (00:23):
Hey Dan, thank you so much for having me.
Speaker 2 (00:25):
Walking through this right now. Of what we see in
the Denver metro area and statewide, are we talking more
of a buyer's market than a seller's market?
Speaker 3 (00:34):
Great question. We're definitely looking at a little bit more
of a buyer's market than we typically see here in Colorado. However,
I would argue that we're looking at a mostly balanced market.
Typically we hang out in the one to two months
inventory range, especially in the Denver metro region, but recently
(00:55):
this year, the theme has been three plus months of
inventory on the market, meaning if no new homes were
to come on the market, it would take about three
to four months to clear everything out that we have,
So a little bit more power in the buyer's hands
right now, but definitely still a seller's market and a
(01:16):
balanced market overall.
Speaker 1 (01:18):
Cooper. I know interest rates and borrowing rates are probably
a psychological barrier for many, even those that maybe want
to pay cash for their homes, that they wait till
the rates come down. But is there a magic number
that from your perch you need to see for the
rate to be where people say, I'm going to get
back into the market and attempt to buy the home
I've been looking at.
Speaker 3 (01:36):
Well, I don't think there's a magic number. Would I
would certainly love to be under six psychologically for our buyers. However,
I feel like this year, you know, we spent a
lot of last year in the seven percent plus range,
and now we're looking at the mid to low six
percent range. So I think buyers are starting to get
acclimated to the new rates and starting to feel more
(01:56):
comfortable with what we would consider an actual more range
of that of that five to six percent range, we're
certainly not going to see, you know, two percent to
three percent mortgage rates for quite a while, so it's
important for buyers to know that really the five percent
to six percent range is what we would consider normal.
Speaker 2 (02:15):
What are we seeing right now for about the median
price of single family homes in the Denver metro area
and how does that compare statewide or maybe compared to
other main states and cities as well.
Speaker 3 (02:27):
Yeah, so the Denver metro area, we're at about six
hundred and forty thousand dollars for single family homes is
the median sales price last month. Statewide we're looking at
about five hundred and eighty six thousand dollars, so a
little bit lower. Things do tend to be hotter in
the Denver metro area. In the suburbs, we actually have
a little bit hotter market up to nearly seven hundred
(02:50):
thousand dollars in the Douglas County, for example, where a
large portion of the Denver metro population lives. So a
lot of variability, but overall prices have remained elevated despite
rising inventory levels and more competition amongst sellers.
Speaker 2 (03:08):
Cooper.
Speaker 1 (03:08):
Are there deals that are out there though for new
first time buyers. But the deals include whether you buy
the home and it needs a little TLC, or you
buy a home but you have a little bit of
a commute. Is there something that one has to sacrifice
to maybe find that home that's in the say fives
or even fours or lower.
Speaker 3 (03:26):
Absolutely, and the real estate is all about balance, so
you know you hear location, location, location. The quality of
finishes has certainly been a major factor in buyers considerations
this summer, so finding a little bit of a fixer
upper or finding something out of town is a great
way to look to save some money. There is also
(03:48):
a lot of deals going around with mortgage rates, especially
on the new build side, with builders being able to
offer a temporary rate buydown sometimes you know, three percent
buydowns for the first three years of your loan. And
we're also seeing a lot of sellar concessions on in fact,
on average about ten thousand dollars on average in the
(04:08):
Denver Metro MLS. Sellers are conceding proceeds to help buy
down interest rates for their buyers. So definitely some deals
out there. It just takes a good competent realtor and
a little bit more patience than we've seen in the
previous few years.
Speaker 2 (04:25):
Cooper. We had another inflation report coming in this morning,
year over year best since March of twenty twenty one.
We've been following those federal interest rate cuts or the
potential of them. So looking at all of this, putting
this into consideration, do we see affordability getting better or
worse in the months ahead.
Speaker 3 (04:43):
Well, we can certainly anticipate things to pick up if
interest rates go down. However, we do have this underlying
shortage of housing in Colorado. You know, we're short a
couple tens of thousands of units, So there will always
be a scarcity that helps prop up the market a
little bit and keep prices elevated. But I will say
(05:05):
that certainly good economic news will always be beneficial to
the market and will help buyers psychologically enter back in
the market if they've taken a pause on their home search.
Speaker 1 (05:17):
Cooper and wrapping up with you, and this is more
personal to your space. With what was going on with
the National Associating Realtors, the settlement they had about negotiating
rates and fees, do you see that having any impact
on you specific to realtors? And at the same time,
does that impact further down the line? Is that a
good thing bad thing for home buyers and sellers?
Speaker 3 (05:36):
Yeah? Well, great question. So the effective data is actually
tomorrow will be removing commission the commission field from the MLS. Personally,
I don't anticipate this is going to make a major
change for consumers. We're still doing things the way that
we've always done things. Commissions are always going to remain negotiable,
and I encourage anyone with questions to reach out to
(05:56):
your local realtor or go to facts dot realtor dot
com I'm sorry, not dot com, fact dot realtor, and
read the National Association of Realtors literature on what the
settlement means for home buyers and home sellers.
Speaker 2 (06:09):
From the Colorado Realtors Association. It's Cooper. Theare Cooper, thank
you so much for your time this morning.
Speaker 3 (06:14):
Of course, thanks for having me
It is Colorado's Morning News. Recent housing data for Colorado
and the metro area showing us softening summer market as
buyer demands slows.
Speaker 2 (00:07):
HI mortgage rates largely being blamed for keeping buyers out
of the market, as housing inventory is also climbing up.
Joining us now on the KWA Common Spirit Health Hotline
to talk more about it. From the Colorado Realtors Association,
It's Cooper. Theare Cooper, thank you so much for your
time this morning.
Speaker 3 (00:23):
Hey Dan, thank you so much for having me.
Speaker 2 (00:25):
Walking through this right now. Of what we see in
the Denver metro area and statewide, are we talking more
of a buyer's market than a seller's market?
Speaker 3 (00:34):
Great question. We're definitely looking at a little bit more
of a buyer's market than we typically see here in Colorado. However,
I would argue that we're looking at a mostly balanced market.
Typically we hang out in the one to two months
inventory range, especially in the Denver metro region, but recently
(00:55):
this year, the theme has been three plus months of
inventory on the market, meaning if no new homes were
to come on the market, it would take about three
to four months to clear everything out that we have,
So a little bit more power in the buyer's hands
right now, but definitely still a seller's market and a
(01:16):
balanced market overall.
Speaker 1 (01:18):
Cooper. I know interest rates and borrowing rates are probably
a psychological barrier for many, even those that maybe want
to pay cash for their homes, that they wait till
the rates come down. But is there a magic number
that from your perch you need to see for the
rate to be where people say, I'm going to get
back into the market and attempt to buy the home
I've been looking at.
Speaker 3 (01:36):
Well, I don't think there's a magic number. Would I
would certainly love to be under six psychologically for our buyers. However,
I feel like this year, you know, we spent a
lot of last year in the seven percent plus range,
and now we're looking at the mid to low six
percent range. So I think buyers are starting to get
acclimated to the new rates and starting to feel more
(01:56):
comfortable with what we would consider an actual more range
of that of that five to six percent range, we're
certainly not going to see, you know, two percent to
three percent mortgage rates for quite a while, so it's
important for buyers to know that really the five percent
to six percent range is what we would consider normal.
Speaker 2 (02:15):
What are we seeing right now for about the median
price of single family homes in the Denver metro area
and how does that compare statewide or maybe compared to
other main states and cities as well.
Speaker 3 (02:27):
Yeah, so the Denver metro area, we're at about six
hundred and forty thousand dollars for single family homes is
the median sales price last month. Statewide we're looking at
about five hundred and eighty six thousand dollars, so a
little bit lower. Things do tend to be hotter in
the Denver metro area. In the suburbs, we actually have
a little bit hotter market up to nearly seven hundred
(02:50):
thousand dollars in the Douglas County, for example, where a
large portion of the Denver metro population lives. So a
lot of variability, but overall prices have remained elevated despite
rising inventory levels and more competition amongst sellers.
Speaker 2 (03:08):
Cooper.
Speaker 1 (03:08):
Are there deals that are out there though for new
first time buyers. But the deals include whether you buy
the home and it needs a little TLC, or you
buy a home but you have a little bit of
a commute. Is there something that one has to sacrifice
to maybe find that home that's in the say fives
or even fours or lower.
Speaker 3 (03:26):
Absolutely, and the real estate is all about balance, so
you know you hear location, location, location. The quality of
finishes has certainly been a major factor in buyers considerations
this summer, so finding a little bit of a fixer
upper or finding something out of town is a great
way to look to save some money. There is also
(03:48):
a lot of deals going around with mortgage rates, especially
on the new build side, with builders being able to
offer a temporary rate buydown sometimes you know, three percent
buydowns for the first three years of your loan. And
we're also seeing a lot of sellar concessions on in fact,
on average about ten thousand dollars on average in the
(04:08):
Denver Metro MLS. Sellers are conceding proceeds to help buy
down interest rates for their buyers. So definitely some deals
out there. It just takes a good competent realtor and
a little bit more patience than we've seen in the
previous few years.
Speaker 2 (04:25):
Cooper. We had another inflation report coming in this morning,
year over year best since March of twenty twenty one.
We've been following those federal interest rate cuts or the
potential of them. So looking at all of this, putting
this into consideration, do we see affordability getting better or
worse in the months ahead.
Speaker 3 (04:43):
Well, we can certainly anticipate things to pick up if
interest rates go down. However, we do have this underlying
shortage of housing in Colorado. You know, we're short a
couple tens of thousands of units, So there will always
be a scarcity that helps prop up the market a
little bit and keep prices elevated. But I will say
(05:05):
that certainly good economic news will always be beneficial to
the market and will help buyers psychologically enter back in
the market if they've taken a pause on their home search.
Speaker 1 (05:17):
Cooper and wrapping up with you, and this is more
personal to your space. With what was going on with
the National Associating Realtors, the settlement they had about negotiating
rates and fees, do you see that having any impact
on you specific to realtors? And at the same time,
does that impact further down the line? Is that a
good thing bad thing for home buyers and sellers?
Speaker 3 (05:36):
Yeah? Well, great question. So the effective data is actually
tomorrow will be removing commission the commission field from the MLS. Personally,
I don't anticipate this is going to make a major
change for consumers. We're still doing things the way that
we've always done things. Commissions are always going to remain negotiable,
and I encourage anyone with questions to reach out to
(05:56):
your local realtor or go to facts dot realtor dot
com I'm sorry, not dot com, fact dot realtor, and
read the National Association of Realtors literature on what the
settlement means for home buyers and home sellers.
Speaker 2 (06:09):
From the Colorado Realtors Association. It's Cooper. Theare Cooper, thank
you so much for your time this morning.
Speaker 3 (06:14):
Of course, thanks for having me
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