Denver could become one of the hottest housing markets in the country should interest and mortgage rate continue to drop, a new report from Realtor.com finds.
Released Thursday morning, the report said because so many homes in Metro Denver are currently mortgaged, even more homeowners would be “unlocked” as interest rates continue to drop.
Should more buyers pull the trigger on a home, it would inject some much-needed energy into a fairly stale housing market that has buyers and sellers largely staying put right now.
Denver7 spoke with Kelly Moye from the Colorado Association of Realtors. She said buyers can still make a splash in the current market with the right negotiating, even if mortgage rates are above 6%.
“It's a consumer confidence issue, and you put a five in front of it, and things change a lot,” Moye said. “What people don't realize is you could [already] have a five in front of it. You could have had that for the last year, because sellers are paying concessions in order to buy that rate down for you.”
Moye said most of her clients have been closing around 5.5% because they have been asking sellers for concessions like buying down their rate since home sales have slowed dramatically.
The report went on to say because Denver is a younger market, first-time buyers are more likely to jump at something that suddenly fits in their range.
In Denver, 73% of homes carry a mortgage, ranking it second in the country. Statewide, that number is 69% — also second in the nation.
