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What Happened to Looking Through 50 Listings for My Dream Home?

Let us go back in time to the year 1985. The first Top Ten list by David Letterman premiered. Back to the Future was the top grossing film. New Coke was launched and failed. The Titanic wreckage was found. The first version of Windows came out to the market. The average price of a new home was

$89,330 and mortgage rates were about 13%.

How things have changed but in the terms of housing inventory we are seeing levels lower than they were in 1985 with a population that has increased by one million. In February of 1985, 17,308 unsold homes were on the market and as of yesterday, only 4,984 homes were available in the Denver market.

Just six years ago-- often over 22,000 listings-- per month. Now?

The pressure is on to find the right home for a growing number of buyers with limited inventory.

Reasons we are so low come from a variety of factors. Many homeowners are still upside down on their mortgages. If they don't have to move, they're not selling.

And the former high competition from builders with brand new homes against the resale homes has dwindled with the lack of construction and bare land funding.

With mortgage rates still at unbelievably historic lows, the remaining homes available for sale in our ever popular Denver Metro are scarce and going up in price.

For sellers however, the sky is still not the limit-- the mortgage companies/banks and the appraisers are still lending to comps, not to seller/buyer price agreements.

And the banks are wanting solid, ready-to-live-in collateral homes for their mortgages. Most fixers (if you can even find them here any more) are cash-only sales for the investors.

How will it continue? Wish I had a crystal ball!

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This page contains a single entry from the blog posted on September 23, 2014 11:20 AM.

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