Pending Homes Sales Are On The Rise
For the first time in six months, Colorado home sales have increased – not by much, but it is an indicator that we could be headed back to a more balanced market. Nationally, home sales rose .7%, which isn’t much, but that’s a lot more than was expected. Experts predicted that pending home sales would decline month over month, but that did not happen. So what’s causing this increase in pending home sales? Let’s take a look.
We’re Starting To See Prices Decrease
One of the biggest reasons for an increase in pending home sales is that inventory has increased. Inventory is expected to grow by 15% this year, which is great news for Colorado home buyers.
With more inventory available in the Colorado real estate market, sellers have to reduce their prices to draw in a buyer. While that sounds like great news for buyers, it doesn’t exactly tell the whole story.
Home values are still increasing, just not as quickly as they have in the last year. According to an article by Center Square, Denver saw a 21.7% price increase in the last year, which is the fifth-highest in the entire country. Overall, Colorado real estate prices have grown, but that growth is starting to slow, which means Colorado homebuyers should feel a little bit of relief when it comes time to buy a home.
Home Buyers Are Still Being Cautious
The Washington Post reported that home buyers are worried about inflation and rising interest rates. In a normal market, these fears would lead to a decrease in sales. However, the real estate market has not been normal for a while now, so that isn’t happening. Despite fears of a recession, home buyers are still out there trying to get into a home before Colorado home prices get to a level that is not realistic.
What Can We Expect?
All signs in the Colorado real estate market still point to more growth. Inventory is slowly starting to rise, and so are pending home sales, but not at a pace that will bring down home values in any meaningful manner.
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