Front Range Real Estate Market Update, April 18, 2024

The national average rate for a 30-year fixed-rate mortgage is 7.43% today, dampening buyer demand and causing inventory to increase. Rates haven’t been this high since December 2023. 

Despite the upward trend in rates, the market is showing resilience. We’ve witnessed a healthy number of closings in the past seven days, and mortgage applications are on the rise. While it’s true that some sellers may face challenges in attracting buyers, it’s important to note that homes are still selling, indicating a strong underlying demand. 

Buyers we talk to want to time the market so they jump in when they can get the perfect interest rate and home prices aren’t higher than they are now. Nationally, prices were higher this March than any previous March. Locally, our average closed price in March was higher only in March 2022. 

In March 2010, we had over 25,000 homes for sale in our area. Last month, there were 10,785 – still below where we were as the pandemic began in March 2020, when 11,645 homes were on the market. From 1985 until now, there were an average of 13,376 homes on the market in March, so we are below average. That means that even if demand has stalled due to high rates, supply is also low, and thus, prices are likely to continue to rise or stay flat rather than decrease.

It’s important to bear in mind that the real estate market, especially during the months of May through August, can be highly competitive. Attempting to time the market perfectly may prove challenging, particularly given the unpredictability of interest rates. Unless inventory significantly exceeds historical averages, we anticipate that many homes will continue to be subject to bidding wars and high prices.