The housing market is at a turning point, and if you’re thinking of buying or selling a home, that may leave you wondering: is it still a good time to buy a home?
The housing market is at a turning point, and if you’re thinking of buying or selling a home, that may leave you wondering: is it still a good time to buy a home? Should I make a move this year? Coming up, I help answer some of your questions in the July edition of the Broomfield Real Estate Show!
One of the big questions on all buyers’ minds is where will mortgage rates go in the months ahead. No one has a crystal ball to know exactly what’ll happen in the future, but what housing market experts know for sure is that the record-low mortgage rates during the pandemic were an outlier, not the norm.
This year, rates have climbed over 2% due to the Federal Reserve’s response to rising inflation. If inflation continues to rise, it’s likely that mortgage rates will respond.
Until inflation peaks, mortgage rates won’t either. Without improvement on the inflation front, we don’t know where the interest rate ceiling will be.
With that in mind, let’s take a close look at the latest statistics in the Broomfield Real Estate market.
Broomfield Inventory
Recently, the number of homes for sale in Broomfield has grown. That’s partly due to more homeowners listing their houses, but also because higher mortgage rates have helped ease the intensity of buyer demand. Moderating buyer demand slows down the pace of home sales, which in turn helps inventory rise. In June, 139 single-family homes were listed for sale. This is a month over month increase of 32% and a year over year increase of 27.5%. Condos and Townhomes saw a significant increase in active listings over the past month with an increase of 35%. However, active listings are still down just over 6% compared to last year.
Broomfield Home Sales
The changing market conditions have really started to have an impact on the total number of Broomfield homes sold. While there was a 12.4% increase in total sales of single family homes over the past month, there was a 21.3% decrease year over year. Condos and townhomes haven’t seen as much of an impact, with a decrease in sales of 8% both last month and since last year.
Broomfield Pending Sales
Last month there were significant increases in pending sales across Broomfield. This month the exact opposite is true. Pending sales of single-family homes are down 18.9% compared to last month and nearly 35% compared to this time last year. It’s a very similar story for condos and townhomes, down 24% since last month and 39% year over year. It’s clear that rising interest rates have had a significant impact on pending sales. I anticipate we will see a similar impact on total sales when I look at statistics next month.
Broomfield Average Sales Price
Due to the imbalance between the number of homes for sale and the number of buyers looking to make a purchase, the pandemic led to record-breaking increases in home prices. Even though housing supply is increasing today, there are still more buyers than there are homes for sale, and that’s maintaining the upward pressure on home prices. Even with slowing sales the average sales price for single family homes in Broomfield continues to rise and currently sits at over $835,000, up 6.1% month over month and 10.9% year over year. Condos and townhomes dipped slightly over the past month but the average sales price is still up 7.9% year over year.
Broomfield Homes Days on Market
The best news for Seller’s is that despite the impact interest rates have had on Buyer’s, homes still continue to sell at a rapid pace. The median days on market is still just 5, up just one day from both last month and last year. Surprisingly, days on market has actually gone down from 5 to 4 for condos and townhomes. My best guess is this is due to condos and townhomes being more affordable than single family homes in Broomfield. When interest rates increased, it made these properties more desirable for homebuyers.
How Can I Improve My Interest Rate?
With inflation rising, you’re likely feeling it impact your day-to-day life as prices go up for gas, groceries, and more. These climbing consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile.
If you’ve been thinking about buying a home this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. When you have a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. Fortunately, you have a couple of options in today’s market to help reduce interest rates. The first is to buy points. This upfront cost reduces your interest rate over the life of the loan. Second, is a 2-1 rate buy-down. Both could be good options for you and I’ll be discussing both in a video soon. Be sure to check that out if you’re thinking of buying a home.
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?
Do you wonder what your home is worth in the current market? Do you desire a specific Property Valuation Report that I routinely prepare for my clients? Please contact me.
If you are considering buying or selling a home, I would appreciate the opportunity to earn your business (or that of a friend you think I could help).
Visit www.NorthStarCompass.net. Phone: 720.351.8488 or [email protected]
For questions regarding this Broomfield Real Estate Market Report or the Broomfield Real Estate Market in general contact:
John Grandt
Realtor® | Real Estate Negotiation Specialist
North Star Team at Compass
[email protected]
720.351.8488
