It’s less expensive to purchase a Central Denver home today than it was a year ago – thanks to falling interest rates and slowing appreciation.
The median price of a home last year was $640,000 and interest rates averaged 4.56% for a 30-year fixed mortgage. This year homes have appreciated to a median price of $666,500 and interest rates this month have fallen to 3.73%. Assuming 10% down, here’s what the savings looks like:
This is the first time we have seen the total cost of financing a home dip since the market started its meteoric rise in prices in 2012.
In addition to the cost savings, the number of homes on the market is at its seasonal high right now. In fact, we have not seen this many homes available for sale since September, 2015. So buyers have plenty of options when looking at homes. With this additional inventory comes stronger buyer bargaining power as seen in the declining list price to sales price ratio which is down to its 2014 low of 98.8%.