All Denver Real Estate Blog

All Denver Real Estate Blog*** 1-877-378-8213***

Larry Hotz, Kentwood Real Estate, Greenwood Village, Colorado

  • Home
  • MLS Search
  • Relocation
    • Neighborhood Finder
    • Relocation Package
    • Relocation Articles
    • Relocation Map
    • Denver Suburbs
    • Corporate Relocation
    • Denver Weather
    • Denver Relocation Realtors You Can Trust
  • Luxury Real Estate
    • New Luxury Listings
    • Luxury Homes Blog Articles
    • Cherry Hills Village
    • Greenwood Village
    • Castle Pines Village
    • BackCountry
    • Heritage Hills
    • Luxury Gated Communities
  • Blog
    • Latest Blog Articles
    • Real Estate News
    • New Denver Homes
    • Realtor Stories
    • Denver Relocation
    • Home Loans
    • Kentwood Company
    • Downtown Denver
    • Stapleton
    • Evergreen, Colorado
    • South Suburbs
    • Boulder, Colorado
    • Highlands Ranch
    • West Suburbs
    • Louisville
    • North Suburbs
    • Aurora
  • Buying
    • Home Mortgage Rates
    • Buyer Broker Advantages
    • First Time Homebuyers
    • Denver Metro Schools
    • Denver Crime
    • Interactive Denver Crime Map
    • Denver Churches
    • Denver Synagogues
  • Selling
    • Free Home Valuation
    • Kentwood Company
    • Kentwood Advertising
    • Agent Criteria
    • Listing Services
    • Seller Tips
    • Out-State Referral
  • Our TV Shows
  • About Us
    • The Hotz Group REALTORS®
    • Meet Larry Hotz
    • Luxury Homes Realtor Elizabeth Hotz
    • Trust Meredith Hotz
    • Dotson Skaggs, Castle Rock
    • Martin Team, Littleton
    • Robert McGuire, Downtown
    • Boulder, Louisville Realtor
    • Tom Cryer, Denver Relo
    • Meet Steven Kruse
You are here: Home / Home Loans / Sellers: Denver Statistician Says “List Now”

Sellers: Denver Statistician Says “List Now”

June 28, 2021 By Larry Hotz, Kentwood Real Estate Leave a Comment

Megan AllerMegan Aller, statistician with First American Title Company, says the Denver Real Estate Market is already starting to slow down just a little bit. But, the cooling is hardly noticeable. She’s warning Sellers  get their properties on the market soon to avoid a possible slowdown later this year. Because, many economists believe interest rates will start to rise again as inflation persists into next year.

Rising Mortgage Rates Could Threaten Home Prices

Clients ask me all the “when will this insanity end”. Because, home prices are being bid up every month to new all time highs. The Denver real estate market is booming. Megan describes the statistics for the “sweet spot” of this frenzy. That’s the homes selling between $500,000 to $1,000,000. She says those home are the most sensitive to any rise in mortgage interest rates later this year.

Already, Megan sees the beginnings of the seasonal slowdown  in Denver homes sales. The number of homes selling is already declining slightly. But, the number of home showings is dropping even more dramatically.

Aller does not foresee any kind of “burst of the bubble”.  Instead, she sees decreasing pressure on prices and perhaps more time on the market. Most importantly, she thinks Sellers need to “hurry-up” to get their listings onto the market as soon as possible.

I’ve been selling homes in this Denver real estate market for over 40 years now. I have lived through the cycles of the market. The booms and busts are never predictable. They seem to come on quickly. They are subject the whims of the markets. That includes the market for mortgage backed securities.

Why Are Home Loan Rates So Low?

Right now, the Federal Reserve Board is purchasing heavily the mortgage bond market. They have said they plan to continue buying at the rate of at lease $40B per month. That alone is enough to keep home loan rate artificially low. However, they have been talking about when to begin to taper those purchases. In other words, the Federal Reserve Board will decide when those rate start to go back up to normal. As a result, they will decide when to cool off this frantic real estate boom in Denver and across America.

Inflation has been hot in the last two months with both producer and consumer indexes coming in higher than expected and higher than the Fed’s announced goals of 2% annual inflation.Higher rates could eventually be used to tame inflation if the higher rates persist longer than the Fed can tolerate.

So, Denver buyers and seller should prepare the possibility, or even likelihood, of higher rates by the end of this year or the beginning of next year. Even Sellers could be adversely impacted by higher mortgage rates especially in that sweet-spot of the Denver real estate market. So, Sellers should seriously consider getting on this still-hot market as soon as possible.

Megan Aller issues a weekly real estate report to Denver Realtors that covers all prices ranges in the Denver real estate market.

 

 

 

Rating: 5.0/5. From 1 vote.
Please wait...

Filed Under: Home Loans Tagged With: Denver mortgage rates, Denver real estate bubble

About Larry Hotz, Kentwood Real Estate

Larry Hotz is the team coordinator at All Denver Real Estate. He is also an active real estate broker at The Kentwood Company in Greenwood Village, Colorado. He lives in the Heritage Hills neighborhood of Lone Tree, a Denver suburb. He is an active member of the Metro Denver Association of Realtors and Metrolist, the local MLS.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Easy Homes Search

Our New Phone Search App

We just made an app that’s easier to use! Lighter. Totally private and secure. We don’t sell your data!
Littleton Colorado and Ken Cary

Search Our Website

Denver Resources

  • Neighborhood Finder
  • Denver City Neighborhoods
  • Suburbs For Relocation
  • Home Buyers Relocation Package
  • Best Denver Schools
  • Dream Home Finder
  • Denver New Homes

Featured Properties

15265 W. LaSalle in Lakewood

15265 W LaSalle Avenue, Lakewood, Co in Solterra

Price: $1,190,00 Bedrooms: 5 Baths: 4 Sq. Ft: 4,196 Finished Year Built: 2014 Stunning … [Read More...]

Pine Creek living room

10071 Clovercrest Drive, Colorado Springs, Co 80920

Price: $850,000 Bedrooms: 3 Baths: 3 Sq. Ft: 3,432 total Year Built: 2001  Property … [Read More...]

960 Pennsylvania Street, Unit 4, Denver CO 80203

Price: $599,000 Bedrooms: 2 Baths: 3 Sq. Ft: 1,432 finished Year Built: 1977 960 Pennsylvania … [Read More...]

2443 S Bannock St Denver, CO

Price: $575,000 Bedrooms: 3 Baths: 1 Sq. Ft: 1,236 Year Built: 1925 2443 S Bannock St … [Read More...]

Happy Clients


Chris and Kira's Move From Texas

  More Video Testimonials

Copyright 2000-2022 by Loren Hotz Owner of All Denver Real Estate. All Rights Reserved. Loren (Larry) is a Broker Associate of The Hotz Group at Kentwood Real Estate. Some articles on this real estate blog were written by Brokers employed by various brokerages including Kentwood Real Estate as identified. Market statistics for the City and Denver Suburbs were provided by the Denver MLS search company, ReColorado.