Lack of certainty leading to reduced interest rates makes the time to act now
With coronavirus increasingly wreaking havoc on daily life, the Denver real estate market is shifting as a result. Like the cancellation of notable events, this market change has come so suddenly and unpredictably, there’s still uncertainty about how much this will affect the Denver real estate market.
But undoubtedly it already has. Of course, depending on how the virus situation develops, the effects here could be much bigger, or less. This uncertainty is part of the big challenge now facing the Denver market, and all aspects of our lives.
Impact on the Denver real estate market
One of the biggest impacts the virus’s spread has on the market centers on an increasing hesitation of homebuyers and homesellers making any big moves. Decisions that involve moving large sums of money (i.e., buying or selling property) require a degree of security, and with the virus rocking security, in multiple sense of the word, these bigger decisions get shelved.
Buyers get especially gunshy when they see their investments in the stock market plummet in value, which will reduce demand this buying season.
As mortgage interest rates drop, approaching 3.0 percent on 30-year fixed-rate loans in some cases, thanks to the Federal Reserve’s emergency interest rate cuts, reveal the depth of the change. These are the lowest rates in 50 years.
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If you need or want to sell sooner than later, my advice is to get your house on the market soon.
Make the move before we head into election cycle, which inevitably causes its own set of irregularity and hesitation, and before the coronavirus has more cases. As people have predicted, the coronavirus continues to spread, everywhere.
That said, if you don’t list in the next month or two, given the coming election cycle, you might want to hold off on selling for the rest of the year.
Right now, it’s all about the dropping interest rates; they are scraping all-time lows. These rates likely won’t be this low again in our lifetimes.
If you have the cash for a down payment, now might be the time to buy, especially with the dampened demand that will accompany this selling season.
Uncertainty plagues the market, but will not completely shutter it. A struggling market creates opportunities, and also new challenges. Reach out if you could use some expert advice about buying and selling in these uncertain times.
[If you’d like a real estate expert’s opinion on buying or selling now, reach out to me at firstname.lastname@example.org]