Front Range Real Estate Market Update, October 17, 2024

Homeowners benefit from the predictability of a fixed mortgage, the stability of putting down roots in a community, and the financial rewards of building equity and home price appreciation.

When homes become unaffordable, more people are cut off from these benefits. That’s why home affordability is an important topic that we return to often. We want as many people as possible to enjoy the perks of owning a home.

While affordability has taken a hit recently, there is good news. Affordability has been improving.

If you wanted to purchase a $575,000 home a year ago, you may have gotten an interest rate of 8.03%. If you put 5% down, your monthly payment could have been $4,672. If you want to purchase a $575,000 home today, you could get an interest rate of 6.53% and a monthly payment of $4,152. Today’s buyer could save $520 per month compared to a year ago.

If you bought that $575,000 in May, your interest rate may have been 7.34%, and your monthly payment could have been $4,412. Today’s buyer would save $3,120 per year compared to just five months ago.

The average home price is down, so buyers can get more for their money than they would have last October.

There are almost 47% more homes on the market now than a year ago, so buyers have more to choose from.

We’ve heard from many people that they want to wait for interest rates to go down. In theory, this could be a good idea—homes could become even more affordable.

It’s important to consider that many other buyers are doing the same thing – waiting for rates to come down and homes to become more affordable. If rates do fall – and while that’s likely, it’s not guaranteed – other buyers waiting will also come into the market, which could drive prices up and negate the benefit of lower interest rates.